Navigating the world of property investment requires an understanding of the market and a strategic approach to decision-making. Below, we uncover some common pitfalls that property investors often encounter.
Property investment mistake #1: Blindly buying in the wrong area
One unfortunate property investment mistake that many individuals make is blindly purchasing real estate in the wrong area. For regular residential investment properties, this oversight often stems from a lack of thorough research and a failure to consider crucial factors such as neighbourhood trends, the quality of schools available, and future development plans. However, with NDIS homes, finding the right area is based on slightly different metrics. The demand data for specialist disability accommodation (SDA) is a crucial factor to consider. There’s no point in building specialised housing in an area where there is low demand. The NDIS demand map helps investors and developers determine where the best areas to build are.
Choosing the right location for NDIS investment property involves careful consideration of several key factors. Proximity to public transport is essential, particularly for individuals with disability who rely on trains or buses for mobility. A location with easy access to public transportation enhances convenience for tenants and also helps them get to appointments and social activities. Access to local amenities, including supermarkets, healthcare facilities, and parks, is equally crucial. Properties situated near these essential services can prove more appealing to potential tenants, saving them time and contributing to a more accessible daily life. Additionally, the availability of support services, such as therapy and personal care, enhances the overall appeal of the property, providing tenants with the necessary resources to live independently. Considering the suburb profile is essential, too, as a safe and well-maintained community with a low crime rate can significantly contribute to tenants’ sense of security and peace of mind, making the investment property more attractive and desirable.
Property investment mistake #2: Fixating on the wrong property type
Investors may fall into the trap of having their heart set on a particular type of property without considering its alignment with their financial goals or the prevailing market conditions. Whether it be residential properties, commercial spaces, or holiday homes, the fixation on a specific category can lead to missed opportunities and financial setbacks.
Successful property investment requires an understanding of the diverse real estate landscape, and limiting yourself to a singular property type may result in overlooking potentially lucrative options.
If you want to own an investment property that can also be enjoyed for personal use, it makes sense to go after the type of property you want to personally utilise. For example, if you’re hoping to rent out a beach house, while also spending every other weekend there with your family, you certainly aren’t going to buy a commercial property. But if the property is purely for investment purposes, it doesn’t make financial sense to become emotionally attached to a particular type of property.
A balanced approach, considering factors such as location, market trends, rental return, and individual investment objectives, is essential to avoid this common pitfall and build a diversified and resilient real estate portfolio.
Property investment mistake #3: Following the crowd
While a casual chat might bring to light your friend’s “amazing investment opportunity”, keep in mind that you’re likely only hearing the best parts.
Following the crowd without conducting thorough independent research is a dangerous game to play. Just because your family and friends are doing something, doesn’t mean it’s the right move for you. In the realm of real estate, it’s crucial to recognise that individual financial goals, risk tolerance, and investment timelines vary widely. Despite the allure of a friend’s “amazing investment opportunity,” it’s essential to exercise caution and conduct diligent research. Casual conversations often highlight only the success stories while overlooking potential challenges or risks. Blindly mirroring the choices of others may lead investors to overlook critical aspects such as market conditions, property specifics, and their own unique financial circumstances. Each investment decision should be based on a solid understanding of your objectives, ensuring that the chosen strategy aligns with your goals and risk appetite rather than merely following the crowd.
We can help
If you’re interested in adding NDIS property to your portfolio, our team is here to guide you through the financing process. Feel free to reach out to us today for personalised assistance in making informed decisions regarding NDIS investment.
