Top 3 mistakes investors make when searching for their next location
Simon Pressley, founder, Propertyology
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Two or others biggest mistakes that investors make when identifying a new location to buy in. Firstly, I feel they don't get the structure right or the investment strategy right. So rather than thinking location specific, should be thinking more about price points and rental returns and levels of gearing. Getting the numbers side of things right first. That will automatically eliminate some locations for affordability reasons. Then I think another common mistake investors make is being influenced by the wrong parties. Whether that's well meaning families, friends, accountants who aren't property investment specialists or whoever. And then probably the third most common decision is actually not understanding the industry drivers and being a creature of habit and going back and buying the next property but in a similar location to perhaps where you already own property in. I call that a concentration risk. So it's important to invest in different states and different towns and cities.
