5 Mistakes First Time Property Investors Should Avoid

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5 Mistakes First Time Property Investors Should
Avoid
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Property investment in Australia isnt just for
the super rich
1 in 15 Australians is a property investor
Retirement planning is the main motivation behind
property investment but, a majority of them
are starting too late.
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Buying The Wrong Property
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Buy properties close to schools, shops, or
transport facilities
Buy an old property that needs a lot of repairs -
old properties in rich suburbs have a lot of room
for profit, but make sure you do your proper
research
Do not buy in an area where there are too many
rental properties
Property investment is long term income planning
do not buy with immediate investment in mind
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Investing In Properties Far Away From Your House
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People usually buy properties within 20kms of
where they live
Do not buy without seeing the property in person
Do not buy without doing property research
Talk to councils and town planner re restrictions
on the area for future planning and development
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• Buy investment property for capital growth, yield
  and cash flow
• Check rental houses in the area to determine how
  much rent you may get
• Don't buy properties someone has just refurbished
• Look for rundown properties to develop or
  renovate
• Look for properties near public transport,
  school, shops, depending on where and how much
  you're spending
• Eg if you're buying a property near University,
  you want to be near public transport

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Not Hiring An Expert
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• A professional mortgage broker can help
• With the right strategies for your finance
• On a budget re affordability
• Work with other professionals
• Does all the legwork for you, including loan
  applications

Some banks offer Premium Broker Status to certain
mortgage brokers
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With professional help, you can find deals that
are better than those offered by the best banks
Facilities include fast loan approval, concierge
service, flexible conditions, fast track loan
applications, etc.
work with other property investment experts
including a professional real estate agent, a
buyers' advocate, a solicitor and accountant
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Not Understanding The Market
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Find information about the local rental market
Get to know the average rent in the area
Know the demographic of the people students,
millennials, baby boomers, etc.
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Underestimating Costs
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Get to know more about the interest rate cost
Get quotes for repair and other activities
Keep spare funds for emergency expenses