In today's housing market, there are several stubborn myths floating around investors and prospective buyers. Some of these myths are distortions of half-truths; others are simply not true.

Before you dive into the property market, you should do some research and vaccinate yourself against some of the common myths that plague the market. To get you started, here are five of the main offenders.

Myth 1: Only rich people can afford to invest in property

This unfortunate fallacy deters many people from getting into the property market. Of course, if you are on a tight budget it will be more difficult for you to save the necessary funds to invest in property. But it certainly isn't impossible.

If you are prepared to buy a property that isn't situated in an inflated, high demand market, you can find properties in Australia for less than $100,000. And with interest rates sitting at some of the lowest levels we have seen in decades in this country, affordable finance arrangements are more feasible than ever for low-income earners.

As long as all lending criteria are met, investors can enter the contemporary Aussie property market with as little as a 5 percent deposit. Deposits need not necessarily be cash; they can be equity in your principal place of residence, or another investment property. And if that seems too difficult, you can always partner up with friends or family members, to ease the burden of investment.

All investors, rich or poor, should invest with caution and not bite off more than they can chew in terms of repayments. But that is not to say that low-income earners can't get into the market and reap decent returns on their investment.

Myth 2: High strata fees make units & apartments bad investment prospects

Any investment property should be assessed in terms of its overall cost position. The cost of strata fees should be weighed up in the context of other costs and revenue. Strata is just one piece of the puzzle - you also need to take into account prospective rental income and any other significant costs associated with the property.

Before you rule out an investment prospect, prepare a cash-flow sheet to determine how the unit or apartment is likely to perform. In built-up, urban areas, high strata fees can often be offset by high rents, which puts the owner in a better cash-flow position.

If you discount all units or apartments simply because you are wary of high strata fees, you could miss out on an excellent investment opportunity.

Myth 3: Investors should buy close to where they live

Proximity to your investment property can be convenient but it should not be a deciding factor for a discerning investor. When searching for an investment property, there are several investment fundamentals to take into account, including yield, vacancy rates, potential growth, the stage of the property cycle, and any significant infrastructure upgrades that might be proposed for the area. These factors combined should outweigh an investor's inclination to only invest close to home.

As evidenced by the high rates of foreign investment in the Australian property market in recent years, it is certainly not necessary for investors to buy close to where they live. If you find an appealing investment property in another city or state, simply source a reliable local agent to manage the investment.

Myth 4: Buying is forever

Many homebuyers are under the impression that once they buy they must hang on to the property for a lifetime. With this in mind, they look exclusively for properties that will meet the changing needs of their growing families and evolving careers over the long term.

But of course there is no reason why you can't sell your property down the track, when your circumstances change. There is no golden rule stipulating that the buyer - homebuyer or investor - can never sell.

A long term buy and hold strategy is often wise but it must also be noted that different markets have different risks over the long-term. For example, properties in regional areas or mining towns may be subjected to a downturn in the market, as their local economies are in flux. Investors should therefore approach these investment properties with caution and pay special attention to the long-term prospects of the region. A smart investment strategy in such areas might be to buy into the market for a single growth cycle, take your profit and then leave the market. In the same way that stock market investors acquire and shed shares as the market peaks and troughs, property investment should also allow for some flexibility and responsiveness to changing markets.

Myth 5: If it's not located in or near the city, forget it

Buyers often get caught up in the myth that a property must be close to the CBD in order to be a good investment. This is so wrong!

There are several factors that affect the desirability of a property - location is just one of them. A smart investor will consider all of the factors that are likely to make a property desirable to tenants. Proximity to amenities, schools, work opportunity and transport is certainly important. So too are planned infrastructure improvements. What is the surrounding neighbourhood like? And let's not forget about the property itself. Is the place in good condition, cosmetically and structurally?

City living is not the be-all-end-all. In fact, inner-city properties often come with a few undesirable traits, such as restricted parking, expensive rates, noise issues, tight council restrictions around renovations, and limited floor space. In contrast, regional areas and outer suburbs can often be a valuable addition to a portfolio, offering a better quality of living to the homemaker or tenant.

Don't let these property investment myths stop you from making a smart investment or a good sale. And be warned: these are just five of the popular falsehoods that complicate the real estate market in Australia. There are plenty of other myths and misinformation out there, so tread with caution.

What's the worst property investment myth that you've encountered?

See also:

Seven deadly sins made by rookie property investors

Young Australians choosing property investment over first home

Home loan myths busted