Ayda Shabanz: Real Estate Myths Steal Profit and Keep Investors Out of the Market

Cash Deposits, Investing in Land and Renovation for Profit are all Wildly Inaccurate Myths that Rob Australians from having Choices in their Future

Land is the only type of real estate worth investing in is just one myth currently stopping people from investing in the Australian property market, according to Sydney-based high profile property and finance leader, Ayda Shabanz.

According to Ms Shabanz, television series that centre around buying, renovating and selling property, then selling for a high profit in short time frame, are largely responsible for shaping and spreading common myths that confuse today’s prospective property investors.

Ms Shabanz said that one of the popular myths advises against investing in land only.

“Investors can absolutely make money on apartments and other forms of property investment, not just land. In fact, often investors can make more money on apartments that are in desirable suburbs close to the CBD than on a block of land in the middle of nowhere.”

Along similar lines, Ms Shabanz said another assumption is that the cheaper the investment, the more profit is made.

“Property investment absolutely does not work on a linear scale and this can make it difficult to make calculations by yourself. It is another reason I always suggest working with an industry expert,” she said.

“Often an investor may spend more money on a property purchase and make a fantastic return. This particular calculation is actually a lot more about the location of the property and of course the property itself. Is it in a handy location and is it a desirable property to live in? These are questions that will determine demand from tenants and the rental price it will attract. The more desirable the home is, the more money can be asked for – the simple supply and demand equation.”

Property investment does not always involve renovation either.

“We have all watched shows about house flipping on TV, where the investors purchase a property, give it a face lift and then sell it to make a sizeable profit, all within the 30 minute program. Usually these shows are best advised to be seen as entertainment, rather than educational material,” she said.

“Often renovating property can be a great strategy for investment, but it shouldn’t be a rule of thumb either. Not everyone is financially or personally placed for property renovation. Again, I advise people to get expert advice for their own situation.  Sometimes property renovation is a perfect strategy for specific homes in specific suburbs, but it is by no means the only available way to make money through property. In fact, enormous mistakes can be made when investors try to over-capatilise on a property without knowing enough about the suburb.”

Ms Shabanz said another popular myth is that an investor should only invest in property they know personally and is within regular reach.

“Many first-time investors will invest in property sight unseen! However, this should only ever be done under the guidance of an industry expert,” she said.

According to Ms Shabanz, many of the investors she consults to will invest in property interstate, therefore cannot be seen prior to going ahead with the investment.

“Whenever I discuss property investment, it is assumed that you need to be wealthy to invest but that’s another myth. Investors can even maintain the lifestyle to which they have become accustomed before investing, with expert advice that is specialised to their situation.”

Another of the most common myths that has been blocking many people from becoming investors is that a 20% cash deposit is required.

“Investors don’t actually need to have that level of cash saved.  An expert will assist them with other means of a deposit such as the equity in their home. Again, everyone is different so this is why it’s important to obtain expert advice rather than googling for advice that is likely to turn out to be a myth at the end of the day.”

Ayda Shabanz

About the author

With over 15 years’ experience moulding the local and national business landscape, Ayda Shabanz is most definitely the Gen Y and Gen Z expert in property and finance. She started her own company at age 20. This young finance and property mogul is absolutely passionate about business, and continues to educate scores of Australians on taking ownership of their own future.  She passionately believes this important information should be available to everyone and regularly provides it around the country in the form of informative and inspiring workshops.  Ayda also personally owns a multi-million dollar suite of investments.

Ayda is now the Co-Founder of several multimillion-dollar property and finance companies, She regularly contributes to Your Investment, Your Mortgage, Domain, The Courier-Mail, Sydney Morning Herald, Sky News, 4BC and Cosmopolitan.


Find out more about Ayda by picking up a copy of The Entrepreneur.

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