Investment tip: ‘Don’t go over the top — and wait’

Ten years ago, while waiting for a flight from the Gold Coast to Sydney, Charles met a young couple who just bought a dozen new properties.

“I was really really frightened because they’d gone all the way away from their own patch, their own backyard to buy property that was new and shiny, that was cheap to get into,” he said.

“It concerns me that people buy investment properties the wrong way and then wonder what goes wrong.”

Buying good properties in average areas that are located near transport and other important establishment is one of the key strategies of smart property investors to save on cash and secure growth for their portfolio.

According to Charles, contrary to popular belief, so-called “property hotspots” are usually the worst places to purchase properties in.

“My advice is to buy in between those suburbs… A lot of times, people want to live in a certain postcard, [or] on the edge of another postcard. They always want to promote the postcard they live in rather than the one next door, and the one next door is the one where you get the best value,” Charles said.

At the end of the day, growing a property portfolio with assets that have great earning potential is more important than owning beautiful and massive real estate.

After all, property investment is not about impressing people with big mansions and wide land areas in your name—it is all about being able to achieve financial security and stability for yourself and your loved ones.

Charles’ advice for budding property investors: “It’s about the way you live more than what you have.”

“If investment properties are going to cause you concern and you can’t handle it, don’t get into it,” he explained further. “Nobody has it easy, everybody’s got to put in the same amount of time to make something work, you’ve got to really think it through.”

Aside from setting goals for themselves, property investors must be able to determine their strengths and weaknesses to be able to navigate their way well through their property investment journey.

“I think a lot of people don’t bite the bullet, but you’ve got to be realistic about it. If you’re in a strong capital city in one of the safest regions in the world… if you’re buying within your means, [you’ve got nothing to worry about],” Charles said.

“I just get a bit concerned with people who are trying to go too quickly with their investments… When I first started buying property at 18 years of age, now I’m 61 years of age, I’m not thinking back then that I want to have a million dollars by the time I’m 30… It doesn't change your life.

"I think if you get a nice lifestyle… stay with it. The investments will work for you, they will be out there. They’ll do the right thing over a period of time provided you don’t go crazy with it,” he concluded.

Tune in to Charles Tarbey’s episode on The Smart Property Investment Show to know more about what concerns him most about investors in today's market, how investors can make sure they're "there when the boom happens," and why some investors have missed out on massive capital gains.