Right now, there are some great investment properties on the market. Interest rates are still low, the economy is stable and annual capital growth is positive.

So what are you afraid of?

Here are five common property investment fears and five ways to overcome them to help you take the plunge and work towards your financial dreams.

I’m new to property investment and don’t know enough about it

No-one is born an expert. Yes, some people do seem to have a flair, but most property investors we help have started with no experience at all. While there are some great property investment seminars you have to pay for, there are also a lot of free online resources from reputable organisations you can look at.

Talk to those in the know. Speak to friends or colleagues who already have investment properties, real estate agents, financial advisors, accountants and other people with specialist knowledge.

That way you’ll learn the process, know your budget and you’ll all know the risks involved.

Buying the wrong property

Once again, speaking to experts and doing your homework can help overcome this fear. The most important thing is to look at whether a property is attractive to renters. The chances are run-down property in an undesirable area will be the wrong property. Educate yourself as to what renters are looking for and remember to treat your purchase as a business – while you might not want to live in a unit in the centre of town, many people do.

What happens if I can’t make the payments?

Interest rates rising, losing your job, the fear of not being able to keep up with payments can easily be reduced by knowing your budget, so always plan for the worst-case scenario. For instance, some people positively gear their investment (ie the rental income covers all the costs); while they will be paying tax on the income, they have peace of mind they are making a profit and this money can be saved for that worst-case scenario. Interest only mortgages are also an option and this may help keep payments manageable.

Bad tenants

This is a common fear, but realistically there are a lot of good tenants out there who want to make your investment their home. The best way to reduce the risk of bad tenants is to use a good property manager; they’ll use screening tools, such as employment verification, contacting previous landlords, credit checks and using a tenant database to ensure you get a good, reliable tenant. And the best bit is, the management fee is a tax-deductible benefit!

Property prices falling

Yes, this is a risk and nobody can predict what the market is going to do. Falling property prices will only affect you if you need to sell, but it’s wise to remember, investing in property is long-term. The chances are, while there may be a few fluctuations in property prices, your property will increase in value over a number of years.

Having been in business in the area for over 40 years, we are in the enviable position to give you honest information to help with the decision making process and help you realise your property investment dreams.

Our talented team is constantly looking for new and innovative ways to ensure your real estate experience is exceptional. This is why we are one of Newcastle’s longest established real estate offices.

If you’re interested in property investment, our friendly team would love to help so give ring us on 02 4954 8833 or call in at our Cardiff office – we’re here to help.