Why Your 1st Property Purchase Is the Most Important!
How important is it to buy right the first time? Well, I’d go as far as saying that your very first property could easily be your very last if you don’t play your cards right from the get-go.
This is because one of the key ways to build a thriving real estate portfolio is by banking on the growth of a property to support the next one (and so on and so forth) through the process of recycled equity.
DON’T GET STUCK IN THE ONE AND DONE TRAP
One wrong asset and you’re stuck!
Now you might say, ‘Oops, oh well I’ll just sell and start again…’
But it’s far from being that simple. Property is not a liquid asset and comes with a range of different variables that will impact your chances of having a positive outcome.
Factors will include what you buy, where you buy and the overall market conditions at the time. Just because you recognise that you made a wrong move, doesn’t mean the current real estate landscape will be forgiving – you may have to buckle up and hold on for years to get the same amount of money out that you put in – let alone make a profit or even think about purchasing additional property.
As you can see, getting it wrong can be detrimental, not just now, but for years to come.
So how can you ensure you’re buying right from the get-go?
AVOID WELL-MEANING ADVICE
Firstly, it’s not listening to your uncle Tom at the family BBQ about the do’s and don’ts of real estate wheeling and dealing (unless of course he’s an expert). All too often, the extent of our research doesn’t go beyond the opinion of our family and friends, who most of the time, are not property tycoons revelling in success.
The key is to get advice from professionals who have real experience and can demonstrate sound results.
But even before you speak to someone, you want to start thinking differently to all the other first-time home buyers.
House hunting can be emotionally exhausting and overwhelming, which can cause people to make rash decisions.
THINK LIKE AN INVESTOR
Yes, buying your first house can be one of the most exciting things you’ll ever do but the key to your long-term success is actually thinking three houses ahead.
Now, if you buy number one wrong, you may not have a chance to get to house number three, which is why we always want to be thinking ahead and looking at the bigger picture.
This comes down to having an investor mindset. Yes, buying your first home may look strategically different to how you’ll purchase your second or third, but there’s no point getting on the ladder if you don’t know how to get up it.
Good investors know the buying factors that will determine long-term victory, where capital growth will flow, how their financing needs to be stacked up and what their next move will be once their first property is secured.
HOW TO BUY RIGHT THE FIRST TIME
The reality is, if you don’t think ahead, you simply won’t get there.
Buying your first home has the ability to set you up for financial freedom in the future. Learn the ins and outs on how to buy right the first time AND how to develop a budding property portfolio in the process at our free property investing seminar.
Plus, you will also get the chance to have one of our property experts assess your exact situation and even establish a property growth plan that’s right for you if that’s what you choose.
There are limited spots available.
CEO – Positive Real Estate NZ