How To Avoid The Biggest Property Investment Mistake

Property investing can be a powerful tool for building wealth. However, not investing in property is one of the biggest mistakes that investors make – and it’s one that can have serious consequences. So how do you avoid this property investment mistake?

 

In this blog post, we’ll explore why property investing is one of the most powerful forms of investing, and how to make sure you don’t miss out on the financial benefits of property investing.

 

As a property investor for over 40 years and a property coach for over a decade, Paul Smith has seen his fair share of property investing mistakes. In this blog post he will reveal the number one property investment mistake and how it can be avoided.

 

What is property investing?

Property investing is the process of buying, managing and selling property with the intention of making a profit.

Property has long been one of the most popular forms of investment due to its ability to appreciate in value over time as it is tied to property values.

Investors can also make money from rental income or capital growth when they sell property at a higher price than when they bought it.

 

What are the types of property investing?

When it comes to property investing, there are two main types – residential property and commercial property.

Residential property includes both single-family homes and multi-family investments such as duplexes, triplexes, or apartment buildings. Residential property investors will typically rent out their properties for monthly income.

Commercial property is property that is used for business purposes and can include office buildings, retail spaces, warehouses, industrial property and more. Commercial property investors usually rent out the property or sell it to other businesses.

Touchstone Education offers courses on the following:

• Deal Packaging Essentials
• Property Investing Fundamentals
• Joint Venture
• Lease Option Income
• Your First Auction Deal
• Mindset Mastery
• Limited Company Essentials
• Serviced Accommodation Bootcamp
• Rent to Rent Strategy
• Commercial Conversions
• Commercial Portfolio Builder
• Serviced Accommodation Masterclass
• Rent To Buy
• Property Business Mastery

What are the advantages of investing in property?

Investing in property offers a number of advantages over other forms of investments such as stocks and bonds.

One of the key advantages is that property investments tend to be more stable than other investment classes. This makes it easier for property investors to hold onto their property for long periods of time and still make a return.

Property investments also tend to appreciate in value over time, making them an attractive option for investors who want to build wealth.

Property investments also offer a steady stream of income for investors who rent out their property. This makes property investing an attractive option for those looking to supplement their regular income with rental income from property.

Finally, property can be used as collateral when taking out a loan, making property investments a great way to secure financing without having to put up too much of your own money.

10 benefits of investing in property

1. Property is a tangible asset that can appreciate over time
2. Property investments can provide passive income in the form of rental payments
3. Property investments offer high returns on investment
4. Property investments are relatively low risk compared to other forms of investing
5. You have more control over property investments than other forms of investments
6. Property investments are tax-efficient in the long-term
7. You have the potential to leverage property investments to increase your returns
8. Property investors can benefit from mortgage and property tax deductions
9. Investing in property can be a great way to diversify your portfolio
10. Property investments can act as a hedge against inflation

 

What is the biggest property investment mistake?

The biggest property investment mistake that investors make is not investing in property at all. Property investments offer a number of advantages over other forms of investments, and missing out on these can have serious consequences for an investor’s financial future.

For starters, property investments tend to offer higher returns than other forms of investing. This means that property investors can potentially make more money and build wealth faster than they would with other types of investments.

Property investments also tend to be more stable than other investment classes, making them a great option for long-term wealth building.

Finally, property investments can act as a hedge against inflation, protecting your wealth from the eroding effects of rising prices.

By not investing in property, investors are missing out on all the potential benefits that property investments can offer. So if you want to maximise your financial future and take control of your wealth, investing in property is a must.

Why is not investing in property a mistake?

Paul Smith has been a property investor for over 40 years and he has achieved the lifestyle of his dreams through property. As a property investment trainer he has plenty of stories of unsuccessful investments and mistakes.

Paul said, “Recently I spoke to an older couple that were more interested in selling assets (clothes, cars etc) than investing in property.

“Some people are scared of investment. But why?

“Having paid off their mortgage, they were reluctant to take money out to build their portfolio and generate more long term wealth.

“Instead they were considering downsizing. Buying a small property not worth as much and to have less space, all for a small amount of extra cash in the short term which when it is gone, it is gone.”

What should property investors do to avoid this investment mistake?

Back in 1972, the average UK property was valued at just £5,158. Adjusted for inflation, this still amounts to a very affordable £49,333 by today’s standards.

Today, the average UK homebuyer is spending £278,436 on the average property. That is a total increase of 464%, with house prices climbing by an average of 9.3% – or £4,582 – every year for the last 50 years.

This means that by not owning property, a significant amount per year is being lost in house price value inflation. 

The median monthly rent was £795 for England (in the year to March 2022). In London, the highest median monthly rent at £1,450. Meaning that using property is an income stream also generates significant earnings in a short period of time.

Paul Smith is hosting a free webinar, Are Time & Money Holding You Back? Discover the Simple 6-Step Plan to Achieve Complete Financial Freedom and Live the Life You Deserve, this Monday at 8pm. Click here to sign up.

To make the first steps on your property journey, read this free Wealth Through Property e-book.

To find out more information about the property investment courses we offer call us on 01302 897131 or email office@touchstoneeducation.co.uk.