EP5: The Five Biggest Property Investment Mistakes to Avoid

 In this insightful episode of "Creating Generational Wealth Through Property Investment," host Adam Bell sits down with renowned property investment strategist Gordon Green to delve into the five biggest mistakes that property investors commonly make. From overcoming the fear of investing to the dangers of emotional purchases and the importance of planning, Gordon shares his wealth of experience and hard-earned lessons to help you navigate the property market successfully. Learn how to avoid these pitfalls and make informed decisions that will set you on the path to financial freedom. Tune in to gain valuable insights and practical advice to enhance your property investment journey. 

What is CREATING GENERATIONAL WEALTH?

Welcome to Creating Generational Wealth Through Property Investment with Gordon Green. Join Gordon Green, a highly successful property investment strategist, as he shares his wealth of knowledge and proven strategies that have empowered thousands of everyday Aussies to build a secure financial future through property investment. In each episode, Gordon delves into the secrets of property investment success, offering practical advice and expert insights. If you're keen to explore property investment, Gordon also works one-on-one with clients to craft bespoke property deals tailored to their unique needs. Tune in and start your journey to financial freedom today.

  Hello again to all our listeners, tuning into creating generational wealth through property investment. I'm your host, Adam Bell, and today Gordon Green is back with us to discuss a critical topic, the five biggest property investment mistakes that Now look, understanding these pitfalls can be as valuable as knowing what to do right.

So let's learn from the best and avoid these common errors because he's made every single one of them, which is how he knows.

Welcome to creating generational wealth through property investment with Gordon Green. Gordon is a highly successful property investment strategist. And in each episode, he shares his knowledge and strategies that have helped thousands of everyday Aussies build a life. Secure financial future through property investment.

Remember, Gordon works one on one with all of his clients. So if a property investment is something you're keen to explore, then Gordon would love to put a bespoke property deal together just for you.

Gordon, thanks for joining me. Hi Adam. Okay. All right. So we've got five to get through. What's the, let's start at the top. What's the number one mistake you see? property investors make

I think the number one mistake is not applying to property investors, but to people in general. They don't invest. Right. They live in a false world thinking their superannuation is going to allow them to retire, and it's never going to go close.

So, I think that would have to be my biggest number one mistake. That

people just don't

do it. Why do you think people don't? A whole lot of reasons. Fear, they're scared of debt, they procrastinate, they're waiting for the market to crash, I mean it's like They hear horror stories that I

lost everything, yep,

yep And the average one doesn't have sufficient information to make informed decisions Yep So they'd rather not make a decision that might be wrong.

At all. I mean you've done hundreds and hundreds and hundreds of property deals over the course of your, your life and, and career and your proof and testament and I'd say to those people out there that live in that fear that you do, you can and will make money through the right property deals and that's where Gordon comes in because he knows what actually makes money so.

They don't even have to be the right deal. Anybody that buys anything and keeps it long term is gonna make money. Yep. But if you want to make real money. Then you've got to understand and do some planning and set some strategies up and actually follow where the market is.

Yep. And go with one of your, one of your R's, which we did in a pre, there's five of them, aren't there?

Okay. But, and they're the way to make it happen and make it happen much, much quicker. But, all right, number two, what's, what's the second biggest mistake?

Not actually doing any planning before they start buying. Right. They go out and get some money together and buy a property and hope that it's going to make them Or they listen to a so called spruiker who's actually flogging something specific that he's making money out of and the client not necessarily is.

And there's enough of it out there, there's just, I don't know, I drown in the information sometimes. And I think, I'm sort of saying sometimes it's not about a lack of ability, it's a lack of wanting to do it. Right. The process I use, I sit down with a client and find out where they are now, where they want to be and what's their expectation of when they want to do that.

I'll have a small program that will show me what percentage return they need to get on their assets to achieve that. And then all you've got to do is stop doing the stuff that won't take you there.

Yep.

And get a balance between your property and maybe your business that you've got. Or your income from a job, and your superannuation and shares you have, and look at where you can tweak them to get it up to the desired result.

To then be able to put a strategy together to get the right deal for you, to meet the goals that you're after.

And it is about what that client needs, it's not about one shoe fits everybody. Yeah, yep. You know like the last episode we talked about a deal that made a guy a lot of money, and people go, Oh, but.

How much did he lose in tax? Well, the answer is none. Because he was playing around with the system where he invests in, start ups and tax programs. And he gets a 100 percent tax write off on it. So, that's sort of Yeah, well,

there's a whole other kettle of fish, isn't it? Making sure your tax affairs are in order to, and getting the right advice there to maximise that.

But it's interesting you mention that, Gordon, because I've always, wondered when you hear that, that, that phrase, you just said, well, how much did he have to pay in tax? Well, you got to make money to be paying the tax. So you're still a, you're still ahead. And again, you get the right advice to minimise that, but I've always, one of these people who whinge about having to pay a whole heap of tax, but you've got to have made the money

in order to do it.

Look, I don't mind paying some tax, but there has to be a limit because I only get the same services or less services than the average person has. Yep. So why would I pay more? If I walk into 480 for the loaf of bread. I pay 4. 80 like everybody else. Yep, yep, for sure. It's a matter of how you structure yourself and what you do.

Yep. And yeah, my accounting fees get a little high sometimes. Yep. But it's either that or pay a lot more tax. Sure. So.

Okay, so number two, someone who just jumps in, has the money, buys the first property they see, or the first one that feels right, rather than doing some planning, getting a bit of strategy, getting some advice from someone like yourself.

And knowing what they need to do to make it work. Yeah. And it's an ongoing process. It's not, this will do for this one, it's, this will take us to where we want to be. Yeah, it's a step to the

next, it's a step to the, yep, perfect. Number three.

Buying somewhere that they think they might like to live in later.

They go and buy a holiday unit, or they go and buy something for their mother in law to live in, or they buy something for their kids to live in. It's a nightmare. Why? Why is it? I don't know. Because it's an emotional decision, it's not a real cut and dried investment decision. Right. And to me they are two separate decisions.

Okay,

so it potentially still could work, but more often than not. Mostly

it's a disaster. Okay. Because they buy, say they buy a unit down the coast. Yep. And they retire 20 years later. Do you want to live in that grubby little 25 year old? Or do you want to have something nice to retire? True,

true.

So you're better off putting your money where it'll make some money for you.

Yep. Yep. And actually earn you some money. Yep. And then when you're ready to retire, you can maybe sell something or refinance something. Or liquidate or whatever you've got to do, so that you can afford to live in what you're really entitled to live in.

Well, I'm going to throw myself under the bus here, Gordon, because I've always had this fairytale idea in my mind.

You're now going to cut me down and say why this would be a terrible idea. I've always had this fairytale idea that I'd buy a, a unit in a high rise in Main Beach. And, Holiday let that out mostly throughout the year, but I'd have a nice place to go and spend weekends in, or the week of school holidays in.

And I thought that would be a fabulous idea.

So you're going to use it when it's at peak time, when you can get the maximum. No, I do that

enough, but that there's emotion in that, isn't there? And you're saying generally, but if you want to make good dollars, you want to have a, A solid investment, that's not the way to go.

What you're doing is confusing lifestyle with investment.

Yep.

And the investment is purely the return of your money. Yep. Not so much return on your money, but the return of your money. And that's why the duplexes work so well for me. Yep. Because you get your money back within 12 months. So you can go and do it again and again.

Whereas what you were talking about is the old 40 year plan. Yeah. Work for 40 years for 40 days. Well at least I get to spend a bit of time by the beach.

And coming back to what you said about going in there, the, you know, School holidays, the most profitable time, yeah. I'm literally costing myself six grand for that week that I'm in there.

It doesn't come out of my pocket, but that's essentially what it's costing me. That's correct. I

see it all the time, or they buy something for their kid to go to uni in. Now that's all right when you've got enough money, you can just park a half a million or a million dollars somewhere and not really expect a return on it.

But for the average investor, that's just crippling. Yeah. Because it's not so much the money they've tied up. It's the borrowing capacity for other deals that they've tied up. Yep. So it goes nowhere. And yeah, I've been there. I've owned the holiday house on the beachfront of Parisian in my younger days, but never again.

Never again.

I can rent it a lot cheaper than it was costing me, I can tell you.

Okay, what are we up to? Was that four? That was number three or four, somewhere around there. Oh, look, give me another

one. Give you another one. Let's think hard about what's I've got an e book out there if somebody wants it that's got over 40.

Things that I see people do wrong. Right. 40 mistakes. It started off as 7

podcast series called The Mistakes You Can Make. We've got 42 episodes right there.

Yeah, there's, it's interesting because some of them you wouldn't even think were a mistake but they turn out to be that way. Yep. Can

you give me an example of one of those?

Oh, another big one. Let's think about it.

Yeah, I think procrastination is a big problem. Yep. They're waiting for the market to go down or they think they can buy better or they think they can do better.

Yep.

And when I research a deal, if that's the deal that's around at the present time, I won't put it up to a client unless it is the best deal that I can find.

Yep. And if they muck around, it's not going to sit there, it'll go within a couple of days. Yep. If it's any good. Because I'm not the only clown that's managed to go out there and find it. Yep. I mean, they'd be fine. Several hundred people that do what I do that. Yeah, so you got it You got to go when when it's there don't you and you've got it when I find something and it's ready to go if you're Not prepared to make a decision within a couple of days.

It'll be gone. Yeah. Yeah, this it's good property Yeah, and I'm not such a genius that I'm the only one that can that knows. Yeah, it's been good deals Yeah, other people could do the same numbers and work it out and go. Hey It's a good deal and they'll buy it. And to my mind, you put it on contract subject to finance or subject to due diligence or whatever you want to do, but that at least takes it out of the marketplace so that you've got control on it.

And then you can afford to do your homework. But people that I show something to and they want to go and do all their due diligence and investigate. And come back

to you three weeks later and say that looks great Gordon, let's do it.

Too late. It's like goodbye, it's gone. And the reality is often they won't buy the next deal because it's not as good a deal as what they just looked at.

Right, and so you've got this cycle then going, don't you, that you're always waiting it to be perfect or to be able to check that it's perfect and rather than just, you know. Understand the

process.

Yes,

check that it's good, but keep it out of the marketplace while you're checking that it's good.

Yep. Don't allow it to sit in the marketplace for somebody else to come on it. I can actually

understand that mindset for someone who's not using you, because they don't know, they're not sure. And they need to tick all those boxes, but I guess that comes back to, you know, again, using your services, your knowledge, your expertise, you can see it and know it.

You don't have to go do that three weeks worth of, it's there. So I

wouldn't have put it up to the client unless I've already done it. And it frustrates me when I put it in front of a client and they want to muck around for a month, trying to make a decision about whether it's any good or not.

I've already done all that work for them. That's what they're paying me for. And I've got more resources and more ability to do it than I ever will. And it's just, it's frustrating, but that's people.

All right, mate. Well, let's finish with one more. I don't know whether we've done five or six, but, give us one more common mistake that, property investors make.

Big

one on the Gold Coast. They've got what I call lazy money laying around. Right. The equity in their properties. Yep. Yep. And they go out there and say, oh, but I can't afford to buy something. And you look at this situation, they live in a $2 million home with a half a million dollar debt, and it's like, hang on, you've got a million and a half sitting here.

That should be earning at least 20%. That's more than you make.

Yep.

That's a major issue, particularly on the Gold Coast here. I see it Sydney's the same way. They've got so much equity in their properties. And it would have

grown massively over the last 5 to 10 years with this, with these massive jumps in, in values.

But they've got this mindset that I'm

just an average person, I can't afford an investment property. Right. And I look at it and go, hang on, you can afford two or three. Yep. All you've got to do is work out how to fund it. Yep. But that's, that probably is pretty high on the list of things that I see people not do.

Yep.

Mate, look, absolutely enlightening what you, what you know about property investment and like we said, you've been there, you've done that, you've seen the mistakes, you've made the mistakes yourself and now you're there to help others so that they don't and you can put together a, you know, a fantastic deal for them.

So, thanks again for look, highlighting. You know, just a handful and grab, grab Gordon's ebook with 42 of them. I think it's 42, in there, that's available on the website. Sorry. Profitable

investment concepts. com. au.

Profitable investment concepts.

Just drop me a note.

I don't have a big sales team and I won't drive you nuts. No,

no. Look good. This is the one thing Gordon's there ready to talk to you directly. What's your phone number? 0404.

743 514.

There you go. Give him a ring or, or drop him a text, have a chat. He works one on one with his clients. He isn't like one of these big groups that have their own stock that are just trying to flog you, what's on their books to, to make their targets.

He goes out and finds you bespoke property deals to meet your needs. And, as we've explained through this. through this series. He does all the hard work for you from start to finish, and is aiming to make you a minimum of 22%, but quite often a lot more. Look, thanks again for coming into the studio, Gordon, and I look forward to chatting to you again, mate.

Thanks, Adam. Always a pleasure to talk to you,

mate.