1. Turn your analysis paralysis into a need-to-do list.
Breaking the whole investing process down in steps or a timeline will make it easier for you to take the emotion out of the process and just focus on what you need to do next to reach the goal you desire. It adds to confusion and nervousness if you try to remember everything in your head. Get it out on paper and worth through what needs to be done systematically.
2. Don’t get bogged down in media headlines.
The only way news channels and newspapers keep themselves in business is by selling. The bad stories make a great headline. That is why you see and hear so many. These horror stories and stories about the market dropping out of property is what feed the newsroom.
3. You are buying a rental property not a home to live in.
The property you buy will be a home to someone else, but it will not be your home. Make your decisions from the point of a landlord and not a home owner. Many tenants will not have the luxury of being picky about things such as whether or not the bathroom is at the beginning or end of the corridor. Buy a property in a good location at a good price that will have tenant demand. That’s it!
4. Determine what spending limit you are comfortable with or require and stick to it.
You might be able to afford to buy an investment property worth several hundreds of thousands of dollars more than you are comfortable with. Be sure you’re buying a rental house that matches your comfort zone then, pull that trigger!
5. The key isn’t doing a home run the first time you buy a rental property.
But instead, to get started and not lose money! You will always be learning and changing your decision making processes, but until you take action and buy that first one, there will be nothing to improve upon.
6. Find and maintain a balance of doing due diligence and not over thinking.
When you are first buying a rental house and you start of look at all the numbers and official documents involved, it’s easy to get stage fright. Of course, check things over carefully, but there will reach a point where you must stop over-thinking or it will drive you crazy and you will end up doing nothing! If the numbers stack up – go for it!
7. Consider the 3 important elements.
Regardless of how many concerns you have or how nervous you are about buying your first rental house, it all comes down to 3 things when looking at a property:
- Numbers: Do the numbers make sense?
- House: Is the house in the condition you think it is and is it the type of property that will rent well?
- Purpose: Is there something else you want to be doing in life? I’m guessing there is.
If these 3 things match up, you should probably overcome your nervous edge and get on with it!
8. Remember you’re not alone.
Everyone’s nervous about anything that will involve stepping outside of the comfort zone. Take some time, check your numbers. Gather a reliable support team (not a sales team!) around you and ask lots of questions.
9. Don’t listen to your brother, uncle, Mum or next door neighbour.
That is of course, unless they have already built a multi-million dollar property portfolio. You think you’re nervous. And yet you’ve still reached the point where you are seriously considering buying a rental house. Let me tell you – your brother, uncle, Mum or next door neighbour is even more nervous than you are – because they probably have never even reached the point you are at because they are so scared. These type of ‘helpful’ advisors can undermine your desire to build wealth and live a life you love quicker than you can say Jack Robinson.
10. Forget ‘la-la’ land.
Sitting on your coach thinking of how great it would be ‘if’ will get you nowhere. Wishing, dreaming, hoping is all great (and fun). But they won’t get you the results you’re after. They say knowledge is power. In fact it is not. Action is power.
11. Let the past be the past.
You might have had times where you have made decisions to invest your money before and perhaps it hasn’t worked out so well for you. Let bygone’s be bygone’s. Just because one thing didn’t work out well in the past, or someone else had a bad experience does not mean you will too.
Remind yourself of the adventures you’ll enjoy, the time you can spend with family, telling your boss you quit. Constantly remember the real reason you want to create wealth through property. Things won’t change from your current reality if you don’t take action.
If you don’t start now, you never will. You may feel nervous buying a rental house but there is no one else to wait for. It’s all you – and your future is waiting for you. After all…
A year from now you will wish you had started today.
Now get out there and buy a house!
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