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Reason 1:
Too much Lending with one BankHaving all properties with one bank is easy but stupid. A lot of Investors don’t realise that the bank control the sales process. If they have all of your properties then that gives them absolute control around any sales proceeds.
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Reason 2:
Too reliant on rental incomeOver time you may need to diversify your income. We have a number of clients buying strong cash flow businesses to offset their property investing.
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Reason 3:
Hold poor performing properties too longTougher lending criteria means you need to be more disciplined about removing low yield properties.
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Reason 4:
Choose poor quality advisorsAlways make sure your Advisors (broker, valuer, lawyer) are independent of who you buy property from.
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Reason 5:
Don’t play with a straight batIf you are going to trade properties then you need to be upfront about that with your broker and with the bank. As you do more deals, and more complex deals, these relationships will become critical.
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Reason 6:
Plan as they goYou really should have a clear investment plan and then buy the right house for that plan. So many clients buy first and plan second.
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Reason 7:
Don’t do their homeworkInvestors don’t look at the demographic market close enough and resort to assumptions rather than facts.
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Reason 8:
Pay too muchInvestors often pay too much because they do not look at enough deals.