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

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