There are some common myths which kill the potential for wealth of an average property investor. How despite is that you live in the plenty of land, but a sad truth is that most of people never achieve this financial freedom.
Still, there is a small number of property investors that are getting wealthier as they ignore these old myths.
So, for becoming like one of those, ignore these common myths as they can hold you back from achieving your financial goals.
1. If you are rich, you are lucky.
The fact is that the wealth creation isn’t related with the luck. For becoming richer, you need to have a good control over the finances instead of counting on a good fortune. If you have a good investment strategy, luck seems unnecessary. A good player knows the right spots for getting the best results. They know the ways of acquiring and controlling the amazing “monopolies” for collecting the highest results.
2. Paying off the house grants security
It is one of the oldest myth which many people learn from their parents. However, it really doesn’t make any sense in this new era of investment and finances. A main problem is that as you do pay off the house, you are left with an idle equity and sitting under a roof not doing anything; the equity which you could have use as the deposit for buying the investment property for growing your wealth.
3. If you have a rent money, you have a dead money
Yes, this old chestnut. You need to buy where you reside, get a big mortgage, and spend your whole life paying that off, right? NO.
Did you hear of rent vesting? It allows you to reside where you wish and inesvt in where you are able to afford. Following are some reasons to consider rent vesting.
● You can choose the area which is in city or close to the work and live the way you want to.
● If you have a house in which you live and decide to move to the new city, you have to sell it. If you are renting, you only have to wait unless you run out of lease, instead of worrying about mortgage.
● If you own a house, you would try to pay it off as soon as possible. However, if you get an investment property, minimum payment can be paid on the loan and concentrate on rest of the things.
4. If you do it rightly, do it yourself
There exist nothing like a self-created millionaire. Every successful property investor owns a great team full of professional advisors as well as supportive mentors with him. but this doesn’t mean that you must hand over complete responsibility of the wealth creation to them. Rich identify that they are no experts in every aspect of the wealth creation, thus they need an expert team who can help them in achieving their goals
5. For becoming rich you have to diversify
Still this is what many financial planners recommend, isn’t?
An average outcome comes from diversification. A successful investor doesn’t diversify – he creates his skills that are required for making a better and smarter investment decisions and then specialize in only one niche at a time.
6. Done everything wrong? It’s never too late
It gets never late to learn the ways of investing or overcoming your mistakes. There are a lot of success stories that involve people who dominated all kinds of adversity. These people started investing later on and achieved the financial freedom.
7. Debt isn’t good
Many people think that debt isn’t a good thing, however not every debt is not bad. Some good property investors understand the uses of good debts for buying the useful assets.
8. Renovations add value into property always
It is suggested to renovate the houses and other properties once in a year. Renovation can increase the worth of a property and enhances the sales. Thus as the property owners spent more money on their property, their purchase price will increase. Even if they don’t add a same amount into the value of the property, they can have a more sales.