There is a growing trend of young people heading into the realm of property investment in the United States, but are many rushing into the arena with little knowledge of some of the potential pitfalls? Even with the global financial uncertainties that are so prevalent today, this trend does not appear to be showing any signs of slowing down; however, many may be unaware that are a number of pitfalls that await young investors who are attempting to take their first tentative steps toward financial freedom.
The chief executive officer and founder of Greater Synergy Group, Ahyat Ishak ? who is himself an active property investor ? fears that a number of aspiring and young property investors think investing in property is a surefire method of getting rich quick. "We must set the record straight for young people that property investment is not a get rich quick scheme," Ishak points out.
Ishak believes that one of the reasons for this misconception is the general speculators who operate in today's market. "It's the four letter word in property that begins with an 'F', which is flip," he says. 'Flipping' is the practice of property purchasing with the intent to sell again quickly in the hope of gaining speedy capital gains from the following appreciation.
While there are a number of very savvy investors who have successfully gained large amounts of profit from this practice, there are also many who have had their fingers burned when the property in question fails to witness value appreciation or, in the worst-case scenario, is actually abandoned before it is even completed. "A lot of young investors think that how you make money is by flipping," Ishak warns. He added: "And they will lose their entire trust in property investment."