Key mistakes people make while buying an investment property
17 Jan 2023
Property investment can be very rewarding and historically has led to financial freedom for many, however one needs to be careful throughout the investment journey. Here are a few key mistakes we see people make when buying an investment property:
- Not researching the local market, property prices, rental demand and researching about the property itself is one of the biggest mistakes that people make.
- Not negotiating the best price for the property or failing to consider all the costs associated with the purchase, such as stamp duty, legal fees, and repairs can lead to overpaying for the property.
- Not getting the right financing or not shopping around for the best mortgage rates can lead to paying more in interest over the life of the loan.
- Not properly assessing the potential rental income, not considering the vacancy rate and not accounting for the ongoing expenses of being a landlord can lead to financial losses.
- Not having a plan for property management or not hiring a professional property manager can lead to problems with tenants and lost rental income.
- Not understanding the rules and regulations around being a landlord, such as the rights and responsibilities of landlords and tenants can lead to legal problems.
- Not having a long-term strategy or not considering how the property may fit into your overall investment portfolio can lead to missed opportunities.
It’s important to keep in mind that buying an investment property is a big decision that requires careful research and planning. Consider all of the costs, risks and potential return on investment before making a decision. If you are unsure where to start, speak to one of our specialists today!