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Top Myths About Property Investing


Property investment is one of life’s biggest decisions, and when it comes to making smart choices, it’s important to sort out the myths from the facts. In this blog, we cover off on five of the biggest property investment myths, and set you straight about your ability to build a profitable and sustainable property portfolio.

Myth One: I can’t invest because I have too much debt

In order to understand why this is a myth, we first need to appreciate that there are two types of debt; good debt and bad debt. Good debt is the type of debt that helps you generate income and build your net worth. Bad debt, on the other hand, is debt that won’t go up in value or generate income (such as a personal loan for a holiday). Because of this, home loans and investment loans are classified as good debt. As long as your debt is manageable and you forecast your income against paying off your mortgage, having existing debt shouldn’t prevent you from generating an income.

Myth Two: I can’t invest because I don’t have any property investment knowledge

Another huge myth about property investment is that you need to be an investment professional in order to succeed. In fact, this couldn’t be further from the truth. As a property investor, you don’t need a wealth of knowledge in order to build a successful portfolio.

What you do need is access to timely and reliable advice that is tailored to your own unique goals and circumstances.

Every year, thousands of ordinary Australians build their wealth through property by doing nothing more than finding the advice that’s right for them and following it. If you’re not sure when or where to start, talk to a property investment expert who would love to share his or her expertise with you.

Myth Three: I have credit card issues, so I can’t afford it

There are a lot of misconceptions around credit card debt and investment properties. In itself, a moderate amount of credit card debt will not stop you from purchasing an investment property. In fact, having a responsible history of credit card use forms part of your credit history and score. Demonstrating a responsible use of a few credit cards actually shows that you can handle your financial obligations well. On the other hand, if you feel that your credit cards have gotten a little out of hand, talking to a property investment specialist may be a great first step towards consolidating your debt into a manageable mortgage that actually helps you build wealth over time.

Myth Four: It’s too risky, I should just pay off my own home

While no financial investment is 100% risk free, real estate remains as one of the safest investment options in Australia. Historically, Australian residential property has offered impressive and stable returns in the form of both capital growth and rental income. This makes property investment one of the most reliable long-term investments available.

Unlike other investments such as stocks, property investment gives you greater control over your assets.  Essentially, you can control where you buy, how you buy and when to sell. If you’re worried about your exposure to risk, talk to a property investment expert. They can usually find an investment solution that matches your individual appetite for risk and return.

Myth Five: Tenants will wreck the property

For every horror story you hear about terrible tenants, there are hundreds of success stories. In fact, in today’s competitive rental market, many property investors find high quality, long-term tenants who are willing to look after the property as if it was their own.

If you’re worried about dealing with tenants, it’s a good idea to hire a property manager to take care of rent collection, maintenance, repair work and other day to day issues for you. Taking out landlord insurance is another great way to protect your investment. Landlord insurance is a type of home insurance for your investment property. It offers a financial safety net against unforeseen damages or destruction, and typically covers you against loss of rental income should your tenants leave you high and dry.

Want to know more?

If you’re new to property investing, or know someone who is, the team at Vystal are always happy to help. As one of Australia’s most trusted property investment companies, we’re pleased to share our knowledge on property wealth management and planning strategies. Call us today on: 1300 VYSTAL or contact us online.