Why most people fail at property investing

There are currently over 2 million property investors in Australia[1], and although this number may seem significant, statistics reveal that the majority struggle to maintain or grow their success after initially entering the housing market.

In fact, only 18% of these investors own two properties, and less than 1% own five or more[2], highlighting the challenges many people face when trying to build a profitable portfolio.

Zaki Ameer, real estate expert and Founder of Dream Design Property (DDP) says, “Although any asset is an achievement in itself, success to most property investors is really determined by their ability to continue purchasing real estate. Unfortunately, so many Australians save for their entire working lives to be able to afford an investment property, but very often once they achieve this, their progress remains stagnant because they aren’t sure of what to do next.

“Through building my own portfolio, and having helped DDP clients purchase over 1,000 properties, I’ve learnt that continuing to succeed at property investment has absolutely nothing to do with luck. Instead, it is influenced largely by one’s mindset,” Mr. Ameer adds.

To highlight the importance of an investor’s mentality, Zaki shares the five most common attitudes that cause people to ultimately fail at property investment:

  • Being selfish. When a person is investing such a large amount of money it’s natural for them to want it to be something that they consider ‘perfect’. When it comes to real estate however, rather than purchasing a property based on personal preferences, it’s crucial to prioritise the wants and needs of the target tenant. If an investor puts themselves first they not only decrease the pool of prospective tenants, but they also risk making emotionally-charged decisions.
  • When it comes to property investment, patience is definitely a virtue. Real estate is a long term commitment, and a common example of an investor failing to reach their target financial outcome is when they lack patience and flip the property for a short term gain. In order to increase capital growth, and guarantee rental advances, a property needs to be held for at least 7 years.
  • Not taking responsibility. Often there are numerous parties involved in purchasing an investment property, and a common mistake among failed investors is to blame others for issues that occur. Although certain tasks may be managed by particular people, the responsibility of the property ultimately lies with the investor. If something goes wrong it is crucial to take accountability and work to rectify the situation rather than passing the blame.
  • Countless investors experience ‘analysis-paralysis’ and overly scrutinise any potential purchase to ensure the property is ‘perfect. Although it’s always important to make an informed decision, if an investor has done their due diligence and is comfortable with the return, it’s important to buy without too much hesitation to avoid missing out.
  • Doing it alone. In order to cut costs many investors attempt to find, purchase, and manage a property alone. Although this is possible, for most, it results in failure or having to spend more in the long-run to rectify problems that arise. To guarantee success it’s important to enlist the help of professionals who can ensure the entire process runs smoothly and with the investor’s best interests in mind.

Mr. Ameer adds, “Many people avoid investing in property out of fear of failing.  However with the Australian real estate prices historically doubling every 7 – 10 years, with the right mindset it can be extremely profitable.”

[1] http://www.corelogic.com.au/news/a-profile-of-the-australian-investor-who-where-and-what

[2] http://onproperty.com.au/percentage-of-australians-own-property/

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About the author: Zaki Ameer

Dream Design Property (DDP), founded by Zaki Ameer in 2012 has helped close to 800 clients purchase over 1000 properties. Turnover for the company for its first year was $27,000. Four years later DDP enjoys a turnover of $6.8 million and contributes approximately $90,000 to a variety of charities, including Children’s Hospital at Westmead, Sydney Young Professionals, Tiny Miracles, The Sri Lankan Annual Ball and The Bollywood Club, in its efforts to give back to the community. At just 18, Zaki Ameer arrived in Australia from Sri Lanka with an unfaltering determination to not only land on his feet, but to achieve his big dreams for business success. After multiple life-changing setbacks, including an unfortunate shift in his financial support system, Zaki found himself living in an alien culture with no friends, no income and significant debt resulting from international university fees. Determined to remain in Australia, he spent the next four years, Monday to Friday, working eight-hour days followed by night studies in business, where he’d finally come home at eleven o’clock only to have to complete course assignments. Finally, clear of debt with a Bachelor of Business under his belt, Zaki had a chance meeting that inspired him to try his hand at property investment. Just a few years later Zaki built himself a successful portfolio of 10 properties, worth a total of $3 million. Quickly gaining recognition for his incredible success, Zaki began speaking at seminars and events about wealth creation and personal development. It was here that he built his love for sharing knowledge which led to the creation of Dream Design Property (DDP) in 2012, a unique wealth creation program. Dream Design Property utilises Zaki’s remarkable investment methods and mindset to guide clients as they begin their own property investing journey. Starting with one employee, Zaki now has a team of 20 staff offering each client an ongoing personalised service catering to their changing circumstances and needs. Having a passion for mentoring, Zaki is on hand day-to-day with his team, advising them from a corporate and personal development point of view. Of course, the huge major of his team have their own portfolio of investments. As an example that he is very proud of, Zaki has personally mentored Brendan, one of the team’s key sales staff to grow his portfolio from zero to ten properties in just one year. Unlike many of Zaki’s competitors, he stopped investing in real estate for himself shortly after starting DDP, realising this would ensure that the best stock on the market could be allocated to his clients. This is just one of the ways he feels his company differentiates itself from others out there. Another example of DDP’s unique services is Kickstart. This is one of the company’s main projects which is a unique and affordable program designed to provide Gen Ys with much needed help to take their first step into the property market as well as cement their financial literacy. As to the future of DDP? Zaki’s vision for the company is to continue creating innovative strategies and services for his clients and be recognised as the number one company for wealth creation when it comes to real estate investment. For more information please visit www.ddpproperty.com.au and www.kickstartddp.com.au

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  1. Shelly Long - March 12, 2017 at 8:28 pm Reply

    Thank you for sharing your insight Zaki. It’s always inspiring to read the thoughts of such a young and successful entrepreneur. I’ll keep checking The Property Investor for your articles.

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