Dilleen Property Group 2022

There are so many positive sides to property investing, but not many people talk about the bad sides.

I personally don’t think it is right to only publicise the good things about property investing, so today I’m going to talk about some of the negative sides that are important to consider if you are thinking about getting into property investing and building your own property portfolio.

#1 Dealing with Stress:

The first negative side to investing in property is dealing with stress.

Property investing can become stressful when unexpected things come up, maintenance and repairs are needed, dealing with bills, dealing with tenants, insurances, getting loans, etc.

There are a lot of things that go into property investing which can become stressful if you don’t offload those duties to other people.

With my 43+ properties, I’ve been able to deal with stresses like this because:

1. I’ve learnt how to deal with stress in a more efficient way by changing my mindset.

Instead of getting worked up by small things such as a broken hot water heater or a small repair, I’ve learnt to minimise the frustration and deal with the situation head on. I tend to look at the long-term picture and I always keep a buffer handy for unexpected expenses so I’m not reaching into my savings.

Another great thing to note is that maintenance and repairs and fees such as council/water rates can be a tax deduction, so you can claim a portion of that back.

2. I offload most of the stressful duties to a property manager.

Instead of dealing with things like tenants, maintenance and repairs, council rates and water rates myself, I use a trusted property manager and offload these things for them to deal with. This way I’m not having to waste time or put extra stress on myself. In my case with owning over 40 properties, it can get very time consuming without the extra help.

In saying this, it can still be stressful, and if a person isn’t willing to make sacrifices to get where they want to be, then I personally don’t think investing in property is for you.

#3 Being in Uncomfortable Situations

Property investing can be uncomfortable sometimes. Especially if you are just starting out and it’s something you have never done before, of course you are going to be uncomfortable.

When you are building a property portfolio, taking out loans and seeing banks - you can be under a lot of pressure.

In order to grow and expand, you must put yourself in uncomfortable positions at times. You have to push through the short-term pain to get the long-term gain. If you want to be in a better position in 5-10 years from now and build a property portfolio that is going to provide you with a 100k, 200k or 300k passive income, it’s going to hurt in the beginning stages. You have to learn to deal with it and get to the other side, which is exactly what I have done.

Now, I don’t want to scare anyone off property investing because I do believe the positive sides of investing certainly outweigh the negative sides. I just want to warn anyone who cannot deal with inevitable things like this.

#4 Putting in the Work

Number 4 is putting in the work - especially in the beginning stages.

Property investing is not all sunshine’s and rainbows. In order to reach that passive income goal and financial freedom, you really have to put in the hard yards in the beginning.

While, you can offload a lot of the responsibilities to property managers, etc. there are always responsibilities that come with owning property, that’s just how it is.

The need to increase your income may also come into play when building a property portfolio. This may mean taking on extra hours at work, getting a new higher paying job, getting a second job or starting a side hustle, etc. If you want to move forward you may have to deal with things like this along the way.

If you don’t want to have responsibilities then investing in property isn’t for you.

Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.