The biggest mistakes property investors make when it comes to financing their purchase
Michael Yardney is the founder and CEO of Metropole Property Strategists and a veteran property investor.
Property investment is a game of finance with some houses thrown in the middle
"Beginning investors think they can just go to any bank, get the lowest loan rate and they will be set. On the other hand, strategic investors don't use finance to buy properties, they set up their finance to buy the time to ride the ups and downs of the property cycle so their investment properties can increase in value and give them the equity and cash flow to buy further properties.
They do this by setting up cash flow buffers in facilities such as offset accounts so that they have the ability to pay for unexpected expenses or manage cash flow shortages."
Focus on the long term
"This year the performance of our share market and the property markets, as well as the numerous pessimistic property predictions by the so called 'experts', reminded us that we should not make 30-year investment decisions based on the last 30 minutes of news.
Strategic investors have a long-term focus and don't change their plans based on what's happening now."