5 Property Investing Myths That Kill Investors' Future

If you’ve been investing in houses you’re probably listening to advice you’ve come across and believe to be true. But is it? Just because something is considered “common wisdom” that doesn’t necessarily mean that it’s entirely true. It may be only partly true or it might be true only in certain circumstances. There are many property investment concepts that have been commonly maintained as being true…but are, in
reality, myths. Following are five common myths that stop people from investing in property:

Myth #1 – HOUSES ARE ALWAYS BETTER BECAUSE OF THE LAND CONTENT
Some parts of Lagos and Abuja are highly desired and yes, the price of land is leading to increases in property value. Remember, however, that not all land is the same. You won't need to look too hard to find thousands or hundereds of hectares of land in other parts of the country that won’t grow in value.
Why? Because nobody wants to live there! Desirability plays a huge part of real estate growth. In fact, without it, you won’t see an increase in your property’s value. This is why your property research should be targeted towards those areas where people want to live.

Myth # 2 – YOU CAN ONLY USE YOUR SAVINGS FOR PROPERTY INVESTMENTS
Typically, a beginning investor or someone with a negatively geared property will need cash flow the most, therefore they might opt out of an investment opportunity if their savings aren't enough, instead of sourcing for funds from other options or loan to secure it.
Then, once they’ve owned the investment property for a time, they have the option of switching towards paying down the principal to increase their equity in the property. Bottom line, interest only loans are a tool to be used in connection with a well-planned property investing strategy.

Myth # 3 – ONLY WEALTHY PEOPLE CAN AFFORD TO INVEST
With the growth of property values all across Lagos and other parts of Nigeria, this myth does appear to be true, but in reality, many individuals with incomes below #100,000 naira are investing in houses. An online survey done by naijapropertiesonline .com found that of the 253 households who responded, 37 percent have an income under #200,000 naira monthly. Data also showed that 29 percent of those respondents had incomes between #100,000 and #150,000 and 34 percent making more than #1,500000 per year.

Myth # 4 – PROPERTY ALWAYS GOES UP IN VALUE
Certain real estate cycles might make this myth seem to be true, however it’s not. One quick look at the history of market values will show you, without question, that property values don’t always rise… sometimes they remain stagnant and at other times they even fall. To mitigate any negative market changes, be sure that you’re always investing in houses or units in a suburb with strong fundamentals (e.g social amenities and access roads)

Myth #5 – YOU SHOULD ONLY INVEST NEAR THE CBD
Buying near the Central Business Districts is a great strategy, however it’s not the only place to invest. While areas close to the CBD do have a tendency to do well in terms of capital growth, that doesn’t mean they’re the only areas with such potential. Savvy investors, depending upon their particular situation and goals, look for property situated in areas where market drivers are strong, even if that takes them outside of the CBD.

So how can you avoid getting caught up in property investing myths? Education, of course, but not just any education. Find successful property investors who are further down the property investing road than you are and learn from their mistakes. Meet up with like-minded people to keep yourself grounded in the truths about investing in property and for a bit of encouragement when the going gets a bit rough or you just need some good advice.

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Source:
https://www.positiverealestate.com.au/5-property-investing-myths-kill-investors-futures/Real Estate

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