20 Pitfalls for Property Investors

According to the experts, financial mistakes such as these can turn a perfectly positioned investment property into a nightmare:

• Going directly to a bank rather than through an investment-savvy finance broker.
• Not having a financial buffer for unexpected repairs, vacancies and inevitable interest rate rises.
• Choosing a loan based on the interest rate only.

• Waiting too long to save a deposit.
• Not calculating hidden costs such as stamp duty, registration fees, land tax, conveyancing, insurances, council rates and owners corporation fees and management costs.
• Buying an investment property to get a tax loss.
• Not claiming depreciation.
• Not structuring your loan properly.
• Having inadequate landlord insurance.
• Not understanding the property title.
• Buying the wrong property.
• Not getting advice before buying.
• Not doing pre-purchase homework.
• Buying too small.
• Paying too much.
• Not researching the rental potential correctly.
• Self-management.
• Failing to jump on rental arrears.
• Skimping on maintenance.
• Inappropriate or no landlord insurance.

Source: http://www.heraldsun.com.au/realestate/avoid-property-investment-traps/story-fnczi4hc-1226514883173