4 Ways Your Brain Tricks You Into Losing Money

Don’t fall into these mental money traps.

 

Your brain may be to blame for some of your bad money choices. 

By Meg FavreauMarch 20, 2014Leave a Comment SHARE

Investing in property is a preferred investment strategy in Australia and it’s unlikely to change anytime soon.

There are some ‘golden rules’ to follow when buying an investment property, rules that have stood the test of time.

Before we jump into those rules, you need to look at the investment and decide if you have a short-term focus for the property or a long-term one. A short-term focus would likely mean that you would purchase it, renovate it and sell it as fast as possible – making the biggest profit possible in the shortest amount of time.  A long-term perspective means that you would purchase the property to hold it, possibly add some upgrades, then rent it out for the highest rent possible.

So what are the golden rules:

1 – Set your rules and know the market: That means know what sort of properties you are after and how…

With an investment property you need to create a balance between having amenities that appeal to tenants, while eliminating the ones that can create headaches – such as having a pool.

Having an automatic garage door isn’t really a ‘must have’, it’s a ‘nice to have’. But if you have a garage, the chances are it will not be manual and therefore has a high probability of creating issues. When there are issues, they usually need to be corrected immediately, this is especially true if the garage has internal access.

So what can go wrong?

• Lost remotes are a common occurrence and are usually easy to replace. You need to consider if you will replace them on your dime, or if you are going to make your tenant pay for the loss.
• Door opener when they jam half way or doesn’t work, they need to be fixed.
• Broken springs  and…