Lots of people say if you get your first property investment
right, everything else will be smooth sailing in your property portfolio. The
statistics, however, tell a different story. According to property investment
expert, Michael Yardley, approximately 50 per cent of property investors sell
their portfolio within the first five years. Of the other 50 per cent who
remain in the market, 10 per cent never own more than two properties. To make
sure you're setting yourself up for success in property investing, there are
some key mistakes you need to avoid so you can strengthen your property
investment strategy. Here are the mistakes you need to avoid to set yourself up
for property investment success.

Buying in the Wrong Location

The majority of your property's performance is hinged on its
location. Therefore, it's important you get this step right when you're looking
for the next property to add to your portfolio. There are specific growth
drivers you need to look for in a property. Many of these growth drivers will
be associated with the amenity, infrastructure and access that suburbs in the
inner and mid-suburban areas of capital cities offer. Of course, there have
been cases where regional centres have experienced astronomical growth, but if
you're looking for sustainable, long-term capital growth, this is most often
found in Australia's capital cities.

Assess Rental Yield Properly

When you're looking for new investment properties, sales
agents may over-inflate the rental yield you can expect from a property.
Whether intentional or not, sales agents are obviously more in tune with sales
statistics, which is helpful, but you'll want to get an expert opinion on the
rental market too. To do this, talk to a local property manager who can give
you a realistic expectation of rental yield in the area.

Be Strategic About Finance

Structuring your finance properly is crucial for the
long-term success of your property portfolio. To make sure you're not doing
things like trying to refinance when credit has tightened, make sure you're
aware of the broader macroeconomic picture in Australia and abroad. It's
helpful to have an understanding of things like the business and credit cycle.
Enlisting a trusted financial adviser who can help you not only use your
financing to buy property but to help you effectively structure your portfolio
to reflect current market conditions is useful too. This can include something
like a line of credit for emergencies or a mortgage offset account to see you
through tough market conditions. Property investing is an excellent vehicle for
building long-term wealth, but it doesn't come without its challenges. Make
sure you're methodical and logical with your approach to property investing and
build relationships with trusted advisors who can give you an objective view on
your strategy and any additions to your portfolio.