Property investment may be simple, but it's not easy according to best selling author and property expert - Michael Yardney.
About one in four property investors sell their property within the first year and almost half have sold up in within five years. Of those who remain in the game, less than 10% own more than two properties and less than one in 200 own six or more investment properties.
In his latest market update, leading property expert Michael Yardney, CEO of Metropole Property Strategists explains eight sure fire ways to lose money in property over the next few years. He warns that most property investors fail to reach their objectives of financial independence and explains that in the current environment, this will only get worse.
Michael Yardney warns the areas to avoid are:
1. Off the plan purchases
2. House and Land Packages
3. Buy renovate and sell a property strategies
4. Positive cash flow properties
5. Buying property with an option
6. Buying properties with a Rent Guarantee
7. Regional properties
8. Buying in mining towns.
Well if these methods don't work, what does?
Yardney explains that if you want to grow your own significant property portfolio, you need to own properties that provide wealth-producing rates of returns. This means buying a well located property below its intrinsic value, in an area that outperforms the average over the long term and one to which you can add value so you can create some capital growth. This could be through renovations, refurbishment or redevelopment. Then over time borrow against your property's capital appreciation and grow your portfolio one property at a time.
That's what the small group of investors who have achieved financial independence through property investment.
You can view Michael Yardney's latest video blog, where he explains what's ahead for property here: http://www.propertyupdate.com.au/video-market-update.html