Go Go Conveyancing - property buying pitfalls

10 Tips to Avoid Property Pitfalls

Home buyers and investors should be aware of the pitfalls of buying property or face losing their hard-earned cash.

 

REINSW say it is heartbreaking when people lose money due to poor property purchases, and we agree.

We see every day how excited people get when buying a property and we love being a part of that process with them as their conveyancer.  REINSW say they understand the excitement that buying a new property brings, but they warn that this often leads to people making a bad emotional decision rather than a good financial one. And the realisation of how bad a decision often isn’t realised until they go to sell or tenant the property many years later.

To try and help a little, we’ve shared REINSW’s checklist for home buyers and property investors to avoid property pitfalls:

  1. Do your research. Know what you’re really buying and what it’s really worth.
  2. Choose your area carefully. Is it attractive to other buyers and tenants – close to water, work, leisure and transport?
  3. Don’t buy on price alone. Buy the right property at the right price. Don’t buy the cheapest property in the cheapest area.
  4. Use a professional valuer. Avoid an emotional purchase at a price you might later regret.
  5. Assess demand. Buy in an area with limited available land but plenty of buyer and rental demand.
  6. Set your buffer. Have an emergency cash buffer so you can meet your loan repayments if interest rates rise.
  7. Get pre-approval. Sort out your finance before you start searching for property.
  8. Set your strategy. Have a clear investment plan in place, so you’re always focused on the bigger picture.
  9. Pay for expertise. Use professionals who can provide real guidance and remove the fear from your decision process.
  10. Buy well. Focus on buying well in the first place, it will save you thousands!

Good luck with your property purchase!

Cross post from REINSW http://www.reinsw.com.au/default.aspx?ArticleID=11541

Image Credit http://jimbobspaghetti.deviantart.com/art/Cliff-Hanger-256580081

 

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