Being an investor or owner of property means you will be forced to learn and understand more about the industry. No matter how diligent you are learning the knowledge, sometimes you can be led to wrong direction due to public assumption which aren’t true. Thus, you might as well find out property investment myth that you may have heard and thought they were true. Well, myth is easy to spread and grow rapidly into something that make people believe into it. There is no obligation to find out what the myths are in property business but knowing them won’t hurt.
Property investment myth you need to realize
Basically, there are myths about almost everything. Thus, no wonder that it also exists in property investment. Some people involved in this business may believe in those myths and some don’t. You can choose your side after knowing what myth are there in property business. Here are some of the myths:
- Those who can invest in property are wealthy people. Lots of people think that only those who own large amount of money can afford to invest in property. However, this is a myth that you should not blindly believe into. Surely property investment needs financial support. However, that doesn’t mean those who have no background as millionaire cannot be a part of property investment. Finance for investing in property can be earned in many ways. Some people do saving to earn adequate amount of money for investing. Some get a loan from bank, and many other ways.
- Another property investment myth going around is that everyone is an investor these days. However, it is hard to tell so because not everyone is an investor. The fact of increasing number of property investor is true. However, it doesn’t make everyone an investor in an instant. Become an investor needs time as well. Property investor should build their portfolio and it takes years to establish their investment as well as gain profit they expected since the beginning. Not all people is desired enough to be patient.
- Debt in property investment is absolute bad thing. Well, debt is not always bad. In fact, it can help you gain financial support when you need it. It is bad if you do it in a wrong way and without thorough calculation. Debt can be toxic if you cannot choose the right decision such as what type of loan you really need or can afford. If you use debt to buy promising asset, it can bring positive result to your investment.
- The value of your property will always go up. This is one of the myths that people most believe in. However, it is not always so. Sometimes, the value can decrease. There are always factors than can risk the value of a property. You should take the risks seriously to avoid decreasing value. This property investment myth should not let your guard down of every possibility that one day your property’s value may go down. However, you can avoid it if you take preventive actions from the beginning.