Avoid these common pitfalls to ensure your property investment journey is on the right track
Investing in property can be intimidating. Here’s a list of some mistakes to avoid.
Conduct research to get to know the suburb you’re interested to buy in. Look into demand for rentals, demographics and prospective tenants’ needs. For example, young working professionals may look for a different property than a growing family. Being clear on your investment strategy and speaking with professionals such as your Aussie Brokers, real estate agents and financial planners could also help you decide if a suburb or property is right for you.
Know the purpose of buying your property. Do you want short-term or long-term gains? Planning to live in the property or is it a straight investment? What type of property will help you meet your income goals? Explore these questions before you sign on the dotted line .
Read the fine print if you’re buying off the plan. You’ll need to sign a contract of sale for the purchase once you’ve chosen your development project. It’s important to seek legal advice before signing the contract.
Investment properties don’t necessarily need to be pretty to make money. Location, price and quality of build can trump pristine interior design in terms of long-term value. Take the emotion out of it and make sure the numbers stack up. You aren’t going to live in it. So, don’t worry too much if you don’t like the carpet or the layout .
Location is important when choosing an investment property. A good location can impact your chances of securing a quality tenant and could affect your property’s value.
Buying, managing and selling an investment property can sometimes be costly. So, think through what you can afford in terms of repayments and ongoing and hidden costs.
Stamp duty, conveyancing fees, legal costs, search fees and pest and building reports are some of the costs of property investment. Also factor in ongoing fees such as property management and mortgage repayments.
Ready to chat to an Aussie Broker about finding the right investment loan? Book a free appointment today.