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- What is the most important lesson you have learnt about property investing?
What is the most important lesson you have learnt about property investing?
- By Michael Yardney
- Published 29/09/2006
- Question of the month
Michael Yardney
is director of Metropole - Property Investment Strategists and a highly regarded property commentator. He is the author of the best seller - "How to Grow a Multi Million Dollar Property Portfolio - in your spare time" and co -author of "All You Need To Know About Buying & Selling Your home."
www.metropole.com.au
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Over the years I have seen investors chase the latest fads, rather than adhering to an investment system or strategy.
You see.....
If you have a system for your investing, that takes the emotion out of your investment decisions and gives you a better chance of investment success.
Investors get bored with the simplicity of buying well located good properties and letting leverage, compounding and time work their magic.
The problem is most investors haven't done well by chasing the latest fad or the next big thing or looking for the next big growth area.
Over the years I have seen investors get excited about time share investments, off the plan purchases, cash flow positive properties, regional properties, options,
I guess the lesson I have learnt is that investors who have been the most successful in the long term and have done so safely and without speculating are the ones who bought quality properties in good locations and allowed them to grow in value. They never or rarely sold their properties but would refinance against the increasing equity in their properties
So the lesson is buy the best quality properties you can in the best location you can reasonable afford and never sell it.
You don't need to look for the latest fads or the next speculative growth area if you create your own capital growth.
You create your own capital growth when you a property well than add value by renovating or redeveloping the property.
You further add value when you take advantage of the opportunities created by purchasing at the right time of the property cycle, which happens to be now for major capital cities on
If you are looking for excitment - go ride a motor cycle or go mountain climbing. Don't look for your excitement in your investments.
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1 Response to "What is the most important lesson you have learnt about property investing?" 
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said this on 03 Jul 2008 12:17:11 PM EST
How do I start with $2,000? I am keen but the financial institutions almost laugh at me when I say I want to buy a house.
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