Investing in property has the potential to yield high returns for savvy investors. If you want to to get it right, it helps to know the pitfalls that some investors fall into so that you can avoid going down the same path. To help you with this, we’ve put together this quick guide to some common property investment pitfalls.
Investing in property has the potential to yield high returns for savvy investors.
If you want to to get it right, it helps to know the pitfalls that some investors fall into so that you can avoid going down the same path. To help you with this, we’ve put together this quick guide to some common property investment pitfalls.
In the world of property investment, there’s a large range of skill levels among the many professionals out there. You want the best quality professional advice to be guiding your investment decision making. Choosing reputable companies that employ professionals with proven track records goes a long way toward making sure you’re being advised by the best.
Good professional advice is essential, but this doesn’t mean you’re off the hook. The more you engage with your investment decision making, the more you’ll get out of the work you put in. Important due diligence includes things like asking your professional advisors to show you in writing their advice and the reasons for that advice, and keeping an eye on all development applications in the area around your investment property.
To get the most out of property investment, solid financial planning is a must. This requires you to take a long-term perspective when making financial decisions. You should not rush into this. Avoid becoming overconfident in your investments as market and financial conditions are subject to change over time. Ensure you engage the services of an accountant to guarantee that you’re not missing out on any tax or other financial benefits, such as negative gearing.
Make sure you and your agent are regularly keeping an eye on the rental market. If rents have increased when your rental agreement with a tenant expires, make sure you keep up with the pace of the market. You might even want to try shorter term rental periods if the market has been continually increasing – although it’s important to weigh this up with the cost of seeking new tenants. Of course, not decreasing the rent when you need to can also detract new tenants. Thus, keeping on top of the rental market is vital.
Now that you’re armed with awareness of these property investment pitfalls, you’re ready to start putting them into action. At Rosie & Rosie, we have the tools and expertise to provide you with the information you need to make confident investment decisions. Contact us at www.rosieandrosie.com.au/contact/ for further details.