WOW! Are you thinking this is an exciting time to be a real estate investor and buying investment property?
Buying investment property…did you get the raw end of the deal when you’re buying investment property? There are so many steps where factors can go wrong in the buying process. Steps you may be aware, others you may not even see coming until it’s too late…
Property investors usually learn the hard way by trial and error throughout their property investment journey, and of course this more often than not results in poor decision in context to investments underperforming and a lot of lost time, money and energy.
What if you’re prepared to mitigate risks in the first place? Buying investment property, wouldn’t you want to be armed with as much knowledge as practical to avoid pitfalls?
Here are some of the most common buying investment property mistakes encountered by property buyers:
Paying too much because you didn’t what you wanted and how to effectively negotiate. Did you know nine times out of ten, a third party negotiator would be able to achieve lower price and better deal than if the buyer was to go it alone?
There’s so many buying investment property factors which come into play as you’re negotiating a property purchase, it’s often the hidden motivations and emotional process which brings buyers unstuck.
Rushing in and signing the contract…guilty of this in the past? Are you not clear on your goals and expectations? Under pressure or are resources thin? Maybe the sales agent claimed you’d miss out if you stalled?
Would you know what to look for in a contract to ensure you were fully protected legally? Too many buyers jump in and sign contracts too soon before understanding the deal and reviewing all the details.
When buying investment property, are you leaving yourself exposed and wide open? Don’t be fooled by the so called cooling off period because penalties still apply if you change your mind under this clause and of course, the consequences of this mistake will cost you.
Buying investment property, in fact have you bought the wrong type of investment property? Ever left decisions to the last minute because you’re unorganised, busy or unexpected emergencies took your time?
If you rush into making decision you’re bound to overlook and make devastating mistakes, right? Why would you want to get stuck with an investment property you didn’t want because you had to make a fast decision?
Buying investment property can be divided into two simple steps:
- Allow adequate time
- Do your research
In your contract, buying investment property check list, always make sure you allow for building inspection and pest report. If it’s written into the contract, make sure you’ve booked your building inspector, allowing enough time to thoroughly review the report and negotiate the findings?
Did the real estate agent recommend someone or did you find a building inspector independent of their suggestion? Its always a professional courtesy to take on recommendations, however some agents form strategic alliances with inspectors to get sales through.
Buying investment property and running out of time for finance? Losing the property because bank needs more time or contract date has expired, vendor terminates contract and real estate agent sells it to someone else… property lost and you’re back to square one.
Buying investment property in this scenario happens more often than you’d think, however the situation can be avoided with closer attention to how finance is arranged prior to buying investment property, right?
Buying Investment Property