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Top 30 Common Property Investment Mistakes

common-property-investment-mistakes

An investor or a clown?…Most ‘Masses’ investors wear a big fat red nose without knowing they are wearing it!

Warren Buffett once quoted, “Wall Street is the only place that people ride to work in a Rolls Royce to get advice from those who take the subway”. Investors who able to understand the real inner meanings of this simple quote, would stop any investing activities immediately and start to acquire real knowledge and wisdom to become a successful investor. Investment wisdom is not only acquiring necessary knowledge to make successful investment decisions, but also meant to learn and avoid severe investment mistakes. Buffett’s quote is indirectly pointing fingers to the foolish investors who are really ignorant on what they are doing.

 

Let me ask, “Do you have any history of money losses from property market investing?” or “Your property investment only yields ‘average’ returns for you or “Did you study about all the common investment mistakes investors commit regularly while investing?” If your answer is ‘negative’ to any of these questions, this article will solve your problem. Firstly, these are a well prepared list of top 30 common investment mistakes generally investors make and a warning to avoid these mistakes when investing your money into the property market. Secondly, if you have any history of losing money from property investment or making only average returns, I’m sure, reading this list would help you find the mistakes you have committed.

  1. Start investing without self-assessment on investment and financial goals
  2. Thinking and approaching property market with greed to become super rich overnight
  3. Considering property investment as a part-time job or hobby or a place to test luck
  4. Start investing without acquiring proper knowledge & education on investment, property market, risk and returns
  5. Making investment decisions with lack of knowledge on what, where, when, how much to invest
  6. Questions & Answers – Don’t really understand the distinction
  7. Asks questions and always try to seek your right answer
  8. Your investment system is ‘Hope’
  9. Invest with your ‘Eyes’, rather than with your ‘Mind’
  10. Invest on ‘Sexy’, rather than ‘Value’
  11. Invest on ‘Market Value’, rather than ‘Investment Value’
  12. Invest with the ‘Norm’, rather than ‘Against the Norm’
  13. Invest on Net worth, rather than ‘Cash flow’
  14. Invest on ‘Opinions’, rather than ‘Facts’
  15. Invest on ‘Capital Gains’, rather than ‘Cash flow’
  16. Invest on ‘Salesmanship’, rather than ‘Partnership’
  17. Invest in properties with Minimal, Negative or Zero Cash flow
  18. Invest on the gambling mantra of ‘Buy, Hold and wait for it to go up in value’
  19. Follows the investment activities of the public, fellow investors, colleagues and big investors without a clue of one’s investment goals and financial objectives
  20. Make investment decisions on market rumours, analyst reports and so-called ‘expert’ opinions
  21. Invests without proper study on how global economics affect the rise and fall of asset prices, market volatility and risk-return possibility
  22. Not having necessary investor qualities of patience, prudence and always panic on a property downturn or crash
  23. Invest because ‘I would like some property in my investment portfolio’
  24. Invest on diversification of property portfolio from residential, commercial to industrial and ends up with little or zero competence in either sector
  25. Your key advisors are friends who are broke, family members, property agents and ignorant financial planners – ‘The Blind leading the Blind’
  26. Investing in a property sector (Residential, Commercial, Industrial) that is unfamiliar and unknown to you, simply because others are doing it or so you think can make money too
  27. Invest on ‘kiasu’ mentality – if don’t buy, prices will go up further and will lose out to others.
  28. Loves to buy when prices have gone up in a bunch, and sell when they fall
  29. Your only source of property investment comes from property seminars, courses and exhibitions.
  30. Invest by looking at a ‘Rear View Mirror’, instead of looking at what’s in front

These set of 30 common mistakes are compiled from my own personal property investment experience over the years, being ‘on the ground’ talking to many ordinary investors on their investment mind-sets, as well as being very fortunate to have my late multi-millionaire grandfather as my wealth mentor.

Returns Of My Money, Not Returns On My Money

Amateur investors have taken to that notion of sizing up an investment based solely on the returns it can potentially give back (Returns On My Money).

Real wealthy successful investors ask this instead, “When can I take back my initial investment money (Returns Of My Money)?”

Do remember as an ordinary investor, unlike the big boys, you have a small cash flow, perhaps only from your working income and nothing else. You also have only limited cash to grow your wealth and therefore prioritizing your wealth capital in order to grow that wealth and minimising all possible downsides and risks in your investments is of utmost importance to you. The intent here is to learn to keep and protect your money first. Growing your wealth comes secondary.

As my late multi-millionaire grandfather said this explicitly, “If you want to grow your wealth, first learn how to keep your money.”

Analyse, Admit, Learn and Grow

Successful people always admit their wrongs, review, learn and move on.  Analyse, admit and learn from these 30 mistakes you may have been committing or have committed unknowingly. These lessons will propel you in your property or other investment journeys ahead and help achieve your financial objectives.

 

Click Here To Find Out How You Can Harness Your Intentions And Turn Them Into Reality.

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To your investment success,

Gerald Tay

 

 


About the Author

Gerald Tay Author, entrepreneur, professional investor and loving father, runs crei-academy.com with a tongue-in-cheek approach to property investment - and himself. He is widely regarded in the industry as 'The Common-Sense' Investor. Gerald writes with passion and straight-forwardness, disclaiming wild claims and impractical investment strategies behind lies and ignorance pervasive in the property industry for vested interests. His well-known statement, "All I did is to value my investments with science, logic and common sense.'

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