5 Ways To Lose Money Instantly In Property!!!

Hi,

Did you miss the awesome video of Taz Nguyen last week?

If you missed it, you can watch it again here:

Click Here To Watch His Story:

But today’s email is a bit more quirkier than that.  Here’s my question:

How come you don’t get told at seminars what NOT TO DO  when

buying a property?  Is it that obvious?  If it was then I definitely missed the

memo.  Here’s a quick list of things NOT TO DO (and yes a more

than a few I’ve committed as sins myself!)

1.  Paying Retail when the property has no IMMEDIATE UPSIDE.  If

there is no IMMEDIATE UPLIFT IN VALUE or INBUILT PROFIT then

why buy the property?  Because of POTENTIAL capital gain??

Good luck I say, because you’ll need it.

2.  Renting out properties yourself – especially when you have no

management experience.  I learnt this the hard way, the price I paid

was tragic – trashed house, trashed my confidence too.  I thought that

because I could buy and house and the bank lent me money that I

was superman… wrong!!!

3. Buying Problem Properties Because They’re Cheap.  I thought

only Asians bought things cheap, obviously I was/am wrong.

I see it all the time – properties next to train lines, main roads,

structural damage that’s not worth fixing, under flight paths,

flooded properties….and the list goes on.  You can tell a hot

market when the C-grade property gets snapped up when they

would normally sit on the market for 3-6 months.

4. Buying Property just because everyone else is.  You know what

I do when everyone else is buying???  I accumulate, and then

sell some.  Yes I sell the stock I don’t want or can’t generate income

from – like vacant land.  Interest rates can’t stay this low forever

boys and girls so be sure to have an exit strategy.

5. Buying development sites that you “think” will make a profit.

Developing can be one of the most dangerous things around when

you don’t know what you’re doing.  Even when you think you know

what you’re doing you can be wrong part of the time.  Having said

that what used to take me 12 months to do can now be done in

6 weeks.  Property markets change so quickly these days that

12 months is actually a long time.

Recently I heard of a developer who took 2 years to get an approval

then build 4 townhouses.  He was so lucky that it has been a

rising market, otherwise he’d be on the chopping block like many

were in 2008/2009.

Forewarned is forearmed!

Til next time,

Nhan

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