7 Traps To Avoid With Any Investment Property
One of the best ways to build your property portfolio is to learn from the mistakes others have made. There are also loads of greedy developers out there who are waiting to take advantage of eager new investors and profit from those with less experience. Not nice, and exactly why we created this article,Â to help you avoid these traps.
Today we're going to look at the 7 most common mistakes made by new property investors.
So let's get started:
1. Purchasing the wrong property
With investing in shares becoming more and more volatile under global economic pressure, Australian property, especially those on Brisbane and the Gold Coast remain one of the best investments available today.
However, buying the wrong property is a common mistake made by new investors, and the biggest component, looking at property as the owner instead of the landlord. You need to invest in a property that attracts renters, not buyers. In other words, your individual feelings shouldn't come into it.
2. Not knowing all of the costs
Unless the property is brand new, it's easy to miscalculate the time and money it takes to get a property fit for rental. This simple blunder can lead to serious cash flow obstacles.
Always get multiple quotes for any work, and for safety, multiply the quotes by two to make sure you have a financial buffer.
3. Doing all of the work yourself
Investment properties, especially renovations, can require a lot of work. Perhaps more than you think, yet some new investors may try to do everything themselves to save money.
In fact, it's near impossible to do everything yourself and you should be assembling a team of experts to help you, from handymen to real estate agents. Think of your team as an investment too, and the returns from using them will be superior than taking longer or spending more time and money doing it yourself.
4. Making decisions too fast
Getting into the property investment market takes patience, and although some decisions can be exciting and appear lucrative, they can cost you in the long run. One of the big mistakes is not researching the location and property you're investing in enough, or not asking an expert team like Cultivate Property Investments whoe eagerly follow the Brisbane and Gold Coast property markets, and can help you find a property that has the best chance of growth and success.
5. Investing in remote property
Buy a property in another state, or even country may seem lucrative, but buying an investment property you haven't seen, or can't easily get to access any issues, can result in disaster.
If you do decide to buy remote, please make sure that you've got a trusted, highly reliable agent to manage your investment property for you. It's also recommended to meet your agent in person, no matter where they're based.
6. Not researching other local investors
It's always best to look at what other Brisbane and Gold Coast investors and landlords are doing before committing to an investment property. Try to find out what they're charging for rent, either through the internet or some creative investigation, and look at how long it took them to find their tenants.
You can learn a lot by studying other local property investors and the results they are getting from their properties.
7. Not opting for comprehensive insurance
Opting to not take out a full landlord insurance is a massive mistake, as it covers you should anything go majorly wrong with your property. You should also look into policies that cover lost rental income, and those that pay to move your tenants in the event of a major disaster like fire or flood.
Just be sure to read the fine print, and it goes without saying that the less you pay, the less cover you'll likely have.
A great property investment begins with a great property, and the team at Cultivate Property Investments are always searching for and offering the best Brisbane and Gold Coast apartments and homes for new and highly experienced investors.