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