We asked some of our landlords what they consider to be the most costly mistakes that investors can make in a cooling market.
Here is what they told us:
• Don’t overprice your property in this type of market - it will just sit there for months and you will lose out to the sensibly priced properties in your area
• Present your property in the best light, even if it is a cooling market (fresh paint, new carpets, blinds, landscaping etc)
• Get your finance and pre-approvals done as early as possible. It is now taking a lot longer to secure finance with some lenders.
• Only invest in investment-grade properties. Avoid the lemons.
• Be flexible with the location and don’t overlook adjacent suburbs, which in some cases can be more competitive in price.
• Invest in suburbs with diversified economies to ensure a constant flow of tenants
• Beware of some "off the plan” properties as their value may decrease between the original contract date and settlement.
• Be wary of high rise apartment buildings and the associated strata fees, which can be very high depending on the area
• Be careful who you take advice from and try not to act on fear and impulse
• Remember that property investing is a long-term game- there is no room for short-termism
• Don’t spend thousand on property managers- Use RealRenta to automatically manage your properties and get your rental income paid directly into your bank account
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Thursday, 7 March 2019