The more you know about the most common mistakes that investors make, the better your likelihood of building lasting wealth.

In this series of short 5 minute videos, I discuss the common mistakes I’ve seen investors make.

Today we discuss why it’s not a good idea to only invest in your backyard.

It’s important to get out of your comfort zone when choosing an investment area.

Watch Michael explain:

•    Most investors start by buying in their backyard – in their comfort zone - where they live or where they want to retire or where they want to holiday – all emotional reasons.
•    They think they know the property market because they live there – Knowing your local neighbourhood is not the same as understanding the property market or how property investment works.
•    Look what happened to all the investors who bought in Perth – property values have fallen for 4 years in a row
•    Of the over 300,000 properties on the market at any one time, less than 5% are investment grade.
•    If you live in the right suburbs in the right capital cities by all means become a local expert, but if not hire someone else to be your expert on the ground. Be careful who you hire – not an enthusiastic amateur, but a local area expert to a fly in fly out expert.
•    It’s arrogant to think that you can gain the same expertise that a professional buyers agent has acquired through hundreds of purchases.
•    You can research on the internet – but you can’t gain perspective or experience
•    I’m not saying don’t invest in your back yard – I’m suggesting that don’t only invest in your back yard
•    Avoid Fly In Fly Out buyers agents – they don’t have the on the ground knowledge  - the local agents love them

With thanks to Michael Yardney's PropertyUpdate.com.au