Property investors often buy locally out of comfort, but that's a business mistake. Spread capital across different markets where returns are highest, not where you feel most familiar.
One of the problems that a lot of people do, one of the mistakes they make is that when they're buying property, they buy in their own backyard. And I get why, I understand, right? It's 'cause you can feel it, it's 'cause you can touch it, you can look at it, you can drive past every day to make sure the tenants have put their bins out and all that type of nonsense, right? And that's what people do because you're comfortable. I completely get it. But you've gotta ask the question, is that necessarily the best marketplace to be putting your hard-earned money to make investment returns? Because that's a very, very different question. One, you're thinking like based on emotion. The other, you're thinking like a business owner, right? And as a business owner, you've got to treat your investing portfolio like a business. And as you're treating it like a business, you've got to be thinking about, well, where am I putting my money for the highest level of returns, which is going to keep me safe? Is it the safe marketplace as well? And so you want to make sure that you're diversifying around the different locations as well to take advantage of different growth cycles.
