Mistakes investors need to avoid in a property market downturn

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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Jason Gwerder
Thursday, 7 March 2019

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