The idea of purchasing an investment property can seem an attractive one at the moment, with the property market in most capital cities across Australia proving to be buoyant and exciting. For first time investors it can seem like a whirlwind of open inspections, bank and appointment with mortgage lenders and even property investment seminars to attend. It is all too easy to make mistakes when you’re new to anything; here are a few of the classic mistakes that can catch out those new to the investment property market, and ways to avoid them.
1. Buying The Wrong Property
Professional property experts all agree – one of the worst things you can do as an investor is to “fall in love” or get emotionally attached to a property. It’s ok to love your own home, but when it comes to finding the right property investment it is important to remain impartial and cool-headed when attending open inspections or viewing display apartments in brand new or proposed developments. Just keep reminding yourself that you won’t be living in the property.
2. Managing The Property Yourself
Becoming a landlord and managing your investment property by yourself is challenging. Even the seemingly simple task of finding suitable tenants and setting an appropriate rental price for the local market can become a nightmare if done without proper experience and knowledge. Most professional investors engage real estate agents or property investment companies such as Ironfish to take care of the day-to-day management of their properties.
3. Buying In An Unfamiliar Location
It’s easy to become an expert of the property market in the area in which you reside. Of course it’s much harder to have a grasp of what the market is like in different suburbs, cities or even states. While it is a good idea to broaden your search for an investment property to other locations, make sure you have done enough homework or gathered expert opinions and research about those areas to make a truly informed decision.
4. Not Considering All Of Your Options
Options in terms of investment property can mean looking beyond traditional established homes in the suburbs and considering a range of property types including off the plan and brand new inner city apartments and townhouses. Don’t just narrow yourself to one type of investment simply because you might know more about it – it’s easy to book in for a property seminar or find an expert to talk to who can tell you about the various positives (and negatives) of different types of property.
5. Not Getting Professional Assistance
Finally, as mentioned above, it is important not to jump into any type of investment property before being fully informed about your options. Getting the right assistance right at the beginning of your investment property journey can help you avoid some of these mistakes. Discussing your strategic plans with experts such as those at Ironfish can also help give you new perspectives on your future and your path to wealth creation.