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