My passion for property has long surpassed my personal investments and has extended to educating other property investors Australia-wide and overseas. After all, the strength of the building blocks in the early stages of your investment journey will always determine the longevity of the foundations later on.
No one sums this up better than Benjamin Franklin, especially considering he was one of the Founding Fathers of the United States:
"An investment in knowledge pays the best interest".
When it comes to investing in property, knowledge is just as, if not more important than, the money involved. Your level of property investment knowledge is directly linked to the success of your portfolio, and it’s for this reason I urge you to make some time every week for furthering your education in the property space.
10 minutes a day at lunch or an hour’s dedicated weekend reading – it’s up to you, but there’s no denying that your efforts will put you in a better position tomorrow than you were today.
Other than starting your investment journey off on the right foot, there are three main areas where you can protect yourself with knowledge.
Protect yourself against risk
We’re always so concerned with the external factors surrounding our property investments such as interest rates, market performance and the ‘property bubble’, that we forget how much influence our own knowledge can have on mitigating those potential risks.
As the wise Warren Buffett once said – ‘risk comes from not knowing what you’re doing’. Mitigating risk comes down to education about the investment situation. So in reality, once you know every possible ‘risk’, it is no longer a risk, simply a potential outcome.
Protect yourself against property sharks
Those who enter the property market inadequately prepared or uneducated about the core basics can fall victim to the many property sharks, or ‘spruikers’ unfortunately still operating here in Australia.
These shady characters are known to pounce on fresh-faced investors (and many of our everyday families) and charm them with their convincing investment opportunities. Sadly, some investors make ill-informed investment decisions, usually convinced through unethical or even illegal measures.
If a property deal sounds too good to be true it probably is, and hopefully where knowledge lacks, common sense will prevail. But one way to protect yourself entirely from these types of people is to educate yourself, or partner with a qualified and licensed property professional, to gain knowledge of the different types of strategies out there and what steps you can take to become a great investor.
Protect your financial security
If you find you keep making poor financial decisions, you may need to consider your depth of understanding.
If you don’t improve your level of knowledge when it comes to your finances, you could be putting your financial security at risk.
Put it this way: possessing a wealth of knowledge across all aspects of property investment will protect your financial security greater than any insurance policy you could ever obtain.
Your knowledge is one of your greatest assets; give it the right resources to help it grow.
Talk to us today on 1800 600 890 about investing in peace of mind.