10 Tips To Avoid Property Purchasing Nightmares

Home buyers and investors should be aware of the pitfalls of buying property or face losing their hard-earned cash.

It’s heartbreaking when you see people lose money due to poor property purchases.

Home buyers and investors alike can get so excited about buying a property that they often make a bad emotional decision rather than a good financial one. And often they don’t realise they have purchased the wrong property until they go to sell or tenant the property many years later.

Unfortunately, a poor purchase may result in little or no capital growth or rental income for months at a time, thereby leaving you out of pocket. Buying over-priced property can set your back years financially.

Here’s a check list for home buyers and property investors to avoid property pitfalls:

  1. Do your research. Know what you’re really buying and what it’s really worth.
  2. Choose your area carefully. Is it attractive to other buyers and tenants – close to water, work, leisure and transport?
  3. Don’t buy on price alone. Buy the right property at the right price. Don’t buy the cheapest property in the cheapest area.
  4. Use a professional valuer. Avoid an emotional purchase at a price you might later regret.
  5. Assess demand. Buy in an area with limited available land but plenty of buyer and rental demand.
  6. Set your buffer. Have an emergency cash buffer so you can meet your loan repayments if interest rates rise.
  7. Get pre-approval. Sort out your finance before you start searching for property.
  8. Set your strategy. Have a clear investment plan in place, so you’re always focused on the bigger picture.
  9. Pay for expertise. Use professionals who can provide real guidance and remove the fear from your decision process.
  10. Buy well. Focus on buying well in the first place, it will save you thousands!
This article has been provided courtesy of the Real Estate Institute of New South Wales.