If you’re struggling to find good investment properties, this week’s Steve-ism might help. It’s this:

“There is no such thing as the perfect property.”

Have you ever rejected a property because of something that you later realised didn’t really matter, and are now kicking yourself because you missed out on making money from it?

A common mistake made by many investors is that they are looking for, and won’t accept anything less than, their idea of a perfect investment property. If the perfect property in the perfect location, at the perfect price, with the perfect tenant and/or perfect upside exists then I’ve never found it, and I’ve been looking the world over for the past 18 years!

Watch this video to find out how some property imperfections are really opportunities in disguise:

 

 

The downside of looking for perfection is that you can kiss a lot of property frogs and be disappointed when they don’t turn into property princes. Astute investing requires prudent compromise – working out what you can live with, (or even better, fix to add value), and what’s non-negotiable.

For example, could you live with a property that’s perfect for redevelopment but is on a main road? Or a property that’s giving a great return but the tenant is on a month-to-month lease?

Reminding yourself “There is no such thing as the perfect property” reassures you that you’re not deficient or inadequate when you can’t find perfection, and assists you to consider what compromise you’ll choose to accept because, in the grand scheme of things, a few blemishes is actually normal.

How is, or has, not settling for anything other than property perfection caused your wealth creation aspirations to stall? Please post a reply below. You are also welcome to share any a-ha moments this Steve-ism has triggered and/or post a question or comment.

Until next time, remember that success comes from doing things differently.

– Steve McKnight

Comments

  1. Raymond

    Hi Steve,

    Thanks for the great advice. We did spend a long time to find a “perfect” property as our first home. After spending over 2 years of searching this “perfect’ property, we finally realised that a ‘perfect’ property does not exist. We had learned that we had to adjust ourselves to accept some of the undesirable features of the property.

    You are 100% correct that there is no “perfect property” and therefore your investing advice – “You make profits by buying problems and selling solutions” always works.

    Thanks for another great advice. I look forward to watching more of your Steve-isms.

    Raymond

  2. John Baragwanath

    Hi Steve
    You are so correct!
    I purchased a two bedroom unit at the rear of a “battle-axe” block & was terribly worried no one would want to live there. So much so, as I had purchased it very well, I considered selling it again.
    Once I rented it out I was amazed how much in demand it is for two reason (1) the local council no longer allow such developments and (2) it is the ultimate in privacy – with only a narrow driveway down one side you do not get all the callers & floggers of solar power!

    Over the 10 years I have held it I have never had it vacant & the rental has always been above the norm. Plus the value of the property has gone up disproportionally to those around it. A good buy that well justified taking the risk!

  3. Juerg

    Good advice Steve!
    I am guilty of that very thing right now!
    I liked the way you sort of avoided saying that the perfect relationship does not exist either!
    I know that that would be danger territory! Tounge in cheek of course!
    ( Relationships, just like property, cars and most other thing’s in life, have to be maintained).
    Thank you for the wisdom!

      • Gladys

        Thank you Steve for the reminder about add value opportunities…
        Also it reminds me about the importance of DD need to take to make it right and avoid waste of time and costs etc as every area is different.

        Steve, Congratulations on your 19th wedding anniversary !

        I had the opportunity to see some pics of your family taken at the 2017 Sydney Conference one of members post it in FB. Congrats again all of your look grate. You are a good model for Australian families :)

        Thank you !

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