5 Mistakes First Time Property Investors Should Avoid
Retirement planning is a common motive for people to invest in property. But did you know that a majority of these investors start late? A majority of these investors are making a loss because they have higher holding costs when compared to the rental income. Visit https://www.mortgagecorp.com.au to learn more.
Retirement planning is a common motive for people to invest in property. But did you know that a majority of these investors start late? A majority of these investors are making a loss because they have higher holding costs when compared to the rental income. Visit https://www.mortgagecorp.com.au to learn more.
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
5 <strong>Mistakes</strong><br />
<strong>First</strong> <strong>Time</strong> <strong>Property</strong> <strong>Investors</strong><br />
<strong>Should</strong> <strong>Avoid</strong>
<strong>Property</strong> investment in Australia isn’t<br />
just for the super rich<br />
1 in 15 Australians is a property investor<br />
Retirement planning is the main<br />
motivation behind property investment –<br />
but, a majority of them<br />
are starting too late.
#1<br />
Buying The Wrong <strong>Property</strong><br />
Buy properties close to schools, shops,<br />
or transport facilities<br />
Buy an old property that needs a lot of<br />
repairs - old properties in rich suburbs<br />
have a lot of room for profit, but<br />
make sure you do your proper research<br />
Do not buy in an area where there are<br />
too many rental properties<br />
<strong>Property</strong> investment is long term<br />
income planning – do not buy with<br />
immediate investment in mind
Investing In Properties Far Away From Your House #2<br />
People usually buy properties<br />
within 20kms of where they live<br />
Do not buy without seeing<br />
the property in person<br />
Do not buy without doing<br />
property research<br />
Talk to councils and town planner re<br />
restrictions on the area for future<br />
planning and development
• Buy investment property for capital growth, yield and cash flow<br />
• Check rental houses in the area to determine how much rent you may get<br />
• Don't buy properties someone has just refurbished<br />
• Look for rundown properties to develop or renovate<br />
• Look for properties near public transport, school, shops, depending on<br />
where and how much you're spending<br />
• Eg: if you're buying a property near University, you want to be near<br />
public transport
#3<br />
Not Hiring An Expert<br />
A professional mortgage broker can help<br />
• With the right strategies for your finance<br />
• On a budget re affordability<br />
• Work with other professionals<br />
• Does all the legwork for you, including<br />
loan applications<br />
Some banks offer Premium Broker Status<br />
to certain mortgage brokers
With professional help, you can find deals that are<br />
better than those offered by the best banks<br />
Facilities include fast loan approval, concierge<br />
service, flexible conditions, fast track loan<br />
applications, etc.<br />
work with other property investment experts<br />
including a professional real estate agent, a<br />
buyers' advocate, a solicitor and accountant
Not Understanding The Market #4<br />
Find information about the local rental<br />
market<br />
Get to know the average rent in the area<br />
Know the demographic of the people –<br />
students, millennials, baby boomers, etc.
#5<br />
Underestimating Costs<br />
Get to know more about the<br />
interest rate cost<br />
Get quotes for repair and other activities<br />
Keep spare funds for emergency expenses
Change language