Why is it that so few people are successful property investors?
Hi, it’s Brian and David here from Bugwash Property.
With regard to landlords, David, all of our clients and most people that we talk to that are buying an investment property have a dream.
They want to own half a dozen investment properties before their retirement, but statistics tell us quite differently to that, don’t they?
Yeah they do, Brian, it’s amazing. When you look at the stats, population of Australia is about 25 million,
there’s about 2 1/2 million property investors out there, and out of those 2 1/2 million investors 72% never get past one, and then there’s another 18% that never get past two.
So, 90% of investors never get past two properties, and only about 0.6% of those 2 1/2 million investors have six investment properties or more. But when people start, the lion’s share want to get into that space. So, what happens along the way is that people, a lot of them really just have no idea what they’re doing, they don’t understand the concept of knowing where to buy, when to buy, how to structure things, and when to get out.
So, they just fall by the wayside and unless you can find a person out there, or a company out there that you know, like and trust, that’s got the experience to take you by the hand and get you to where you want to go, it gets tough. So, the stats tell us that 85% of investors actually sell before they make any money. So, it’s really, really sad because people set out to do the right thing, but they just lose their way, they just don’t have enough acumen or education in that space to kick major goals.
But there are ways to beat the odds, and one of the best ways is to listen to people that have already done what you’re wanting to achieve.