Property investment can be a very smart and profitable move, but it can also be pretty intimidating.
Many people are nervous about getting into property investment and have fears and concerns holding them back. Sometimes these fears are based on valid issues, while other times they are based on misconceptions. Either way, these worst-case-scenarios often stop people from making the leap into investing.
Let’s take a closer look at some of the fears that are holding people back from getting started with property investment.
The Property Will Lose Value
A common fear about property investment is that you’ll invest in a property that declines in value over time. Of course, this is a real risk and there’s not a lot you can do to avoid this one. Neighborhoods can decline in value and unpleasant developments such as landfills or highways can be built nearby.
However, you can take precautions against this one, such as buying in a desirable area where the homes are well-kept. You can also contact the local government to find out if there are any future development plans in the area you are considering buying in.
(Of course, there are some issues you can’t predict. There can be a sudden drop in property value due to a natural disaster or other event, or a downturn in the market. These things can’t really be avoided, so you will simply have to deal with these issues as they arise.)
Maintenance Costs Will Be High
Any home will have costs associated with keeping it maintained. However, one of the major fears around property investment is accidentally buying a “money pit” with huge maintenance costs. If this happens, you can easily sink a lot more money into the property than you were planning to.
How can you avoid this? First of all, it helps to buy a home that has been well-maintained and has recently had major renovations. Also, making sure that your home is regularly maintained will help prevent any small issues from growing into major repairs. Buying a new home can also be a good bet, but keep in mind that new homes can have undiscovered problems.
Getting Tied Up in a Mortgage
Another thing that makes people nervous when it comes to property investment is signing up for a mortgage. Mortgages are notoriously complex and confusing and many people are intimidated by them.
If this is a concern, there is an option for property investment that doesn’t require a mortgage. With Partbnb you buy fractional pieces of a property, rather than purchasing the entire thing. There’s no need to sign up for 25 years of debt repayments and lock yourself into a mortgage. In fact, after owning your part of the property for 6 months you are free to sell it off.
This makes Partbnb a very liquid type of investment - without any need to worry about getting tied up with a long commitment to a mortgage.
Buying At the Wrong Time
Another concern when it comes to property investment is that you will buy a home at the wrong time. However, the good news is that it’s never really a bad time to buy the right property.
Real estate has proven over the years to be a solid investment with long term benefits. Even if you missed a low point in the market, this doesn’t mean you still can’t find a great investment.
If you are buying a property for the long term, with the idea that it is going to steadily build equity over time, then you’ll always be buying at the right time.
Being a Landlord Will Be Difficult And Stressful
Another common concern with investing in a rental property has to do with the role of landlord. Many people are hesitant to commit to this role, because they worry it will be time consuming and stressful. And to be honest - it can be.
Being a landlord means that you are responsible for taking care of your property and tenants, fixing maintenance issues, doing renovations and collecting rent. If you have a vacation property, you’ll also need to manage cleaning, check-in, check-out, advertising the rental and more. This is a major commitment.
One of the benefits of Partbnb is that you don’t have to do the work of being a landlord. You’ll own a rental property in a beautiful tropical location, but it will be taken care of by a local property management company.
The property management company, KeyLobby, will handle all the details of running the vacation rental - including listing the property on VRBO, Airbnb and other popular sites to ensure bookings.
Essentially, you’ll be able to receive income every month from renting out the property - without having to deal with any of the stresses of being a landlord.
The Investment is Risky
Another reason to fear a property investment is that it appears to be a risky move. Depending on what your personal risk level is when it comes to investments, you might feel less than comfortable when it comes to taking a risk on a property. The higher the risk of the investment, the more you could potentially lose.
This is another point where Partbnb offers an advantage. Since Partbnb offers fractional ownership in vacation rental property, it is a low-risk investment. The property is divided into 10,000 parts, starting at only $34 each.
Rather than investing hundreds of thousands on one property, it allows you to buy a small portion of a property and diversify your portfolio to lower your risk.
Overcoming Property Investment Fears
These are just a few of the most common fears associated with property investment. The good news is that there are ways to avoid many of these concerns - especially by being smart, diligent and creative with your investing. Partbnb offers a solution that addresses many of these concerns and allows you to invest in property with reduced risk and hassle.
To learn more about Partbnb, visit our How It Works page.
Any questions? Reach out and contact us at any time.