Welcome to Finance and Fury
Today’s episode is with Jayden and we will be talking about why property might not work for you, or when you shouldn’t buy property.
We have talked about using property to build long term wealth using leverage. However, there are some reasons why you should not buy property.
The 4 reasons:
- Getting rich quick
- Financial literacy
- Tax reasons
- Your personal finances
Getting rich quick:
- Property is a long term game, 20 – 30 year journey
- Jumping at an opportunity due to the fear of missing out
- Don’t let your emotions ruin your investment plans
- Trying to time the markets
- Stats show this isn’t a good way
- You need to learn how property works
- Not understanding your finances – just the basics
- You need to know some stuff to get through property investing
- The difference between lifestyle assets and investment assets
- Experience really helps
Doing it for tax reasons:
- Using negative gearing
- Buying a property for depreciation and claiming deductions
- Property should be for long-term wealth building, not loss accumulating
- Having enough cash for little costs
- There will be times that the property isn’t rented
- Make sure you can achieve the loan you need
- Your ability to afford the loan is very important
- What will happen if rates go up?
- Know your limits on borrowing before starting to research investment properties
When do investment properties work well?
- When your finances are in order
- When you can afford a quality investment property
- When your investment plan is long term
- If you are willing to be patient to find the right investment
Thanks for listening today, if you have any questions you can reach us at the contact page here.
Another episode around property investment:
How to invest in property in 2019 – https://financeandfury.com.au/how-do-i-invest-in-property-in-2019/