A lot of people try to find a property that checks all the boxes.
They want a lifestyle property that:
✅ they can visit once a year
✅ AirBnB it for the rest of the year
✅ is in a beautiful location.
This is the biggest mistake that you can make.
When buying a property, you need to be clear about 4 things:
- Pick one between lifestyle or investment property.
You can either pick one that makes you money or the one that you can spend vacations in.
There’s no right or wrong answer. It depends on your specific goals.
- Understand the numbers.
How much positive cashflow will you get out of the property you’re buying?
How long will it take you to pay off the debt?
Do you have sufficient income to make the payments in debt?
Calculate all these things before you make a buying decision.
- Understand the implications of your decisions
If you’re buying a lifestyle property, you won’t be getting any income from it.
It’s s a luxury that’ll take money out of your pocket every year.
On the other hand, it’s hard to spend your vacations in an investment property.
Get clear on how that property will affect you and your goals down the road.
- Get advice.
When you’re making a big decision, your emotions get the better of you.
Having a due diligence framework helps, but it’s still good to get a third party
perspective on things.
Mistakes in property buying can cost you a lot and it’s always good to be prepared
rather than to regret it later.
