Guilty of not doing enough research before investing? This is one of the most common mistakes that cost investors. Before diving into any investment opportunity, investigate the company or fund you’re considering, review its financial statements and analyse its historical performance. Once you know the risks involved and whether they align with your goals and risk tolerance, you’ll be better placed to make a smart decision.
Focusing on short-term gains is tempting, but it can be a risky strategy that leads to poor decision-making. For example, if the latest investment trend seems like a good way to make a quick profit, it’s often at the detriment of the long-term goal. By taking a patient approach and avoiding the urge to constantly jump from one opportunity to another, you’ll have more sustained success in the long run.
Throwing money at any investment opportunity on a whim is risky business. Achieving financial freedom involves careful planning about where you put your hard-earned cash. Start by clarifying your financial goals and then figure out how to achieve them by identifying the tools, resources, and strategies needed.
Don’t put all your investment eggs into one basket. Otherwise, you’re vulnerable to significant losses if that one investment doesn’t perform well. By spreading your investment across different sectors, assets, and companies, you mitigate your risk and, hopefully, achieve better long-term returns.
Protect yourself with plenty of due diligence on every investment. Sneaky charges like management fees, stamp duty, capital gains tax and transaction fees can all add up and eat into your profits. There are also lots of investment scams around, so if an investment sounds too good to be true, it probably is!
Property investment is a proven path to financial freedom, but investors will often make mistakes that derail their goals. If you don’t want that to be you, here’s what you need to look out for:
Property can be a lucrative venture, but it’s never without risks. That’s why it’s so important to do your homework and partner with experts in the field. If you’re keen to start investing, looking to diversify, or building your property portfolio, the First National Real Estate team are here to help!
DISCLAIMER
The following advice is of a general nature only and intended as a broad guide. The advice should not be regarded as legal, financial, or real estate advice. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial, or real estate decisions.