Newspaper article News Mail Bundaberg Qld.

Buyers Must Avoid Blunders

Newspaper article News Mail Bundaberg Qld.

Buyers Must Avoid Blunders

Article excerpt

Byline: Nila Sweeney

THERE'S no question that research is the lifeblood of a successful property investment. Without thorough research, you're investing blind and taking a huge risk.

Thanks to the explosion of available information online, doing your research these days has become so much easier. Everything is available at your fingertips. Property data is now readily accessible online for free on realestate.com.au's Invest section.

Yet many people, even seasoned investors, can sometimes make costly mistakes when doing their research. These include:

Doing too little research

Cutting corners with your research is guaranteed to get you into serious trouble. This is especially true in hot markets like Sydney and Melbourne where buyers are falling over each other to nab a property.

Don't be tempted to forgo your research just because everyone else is doing it.

No matter how "good" a property looks on the surface, you can't and won't know the full picture until you start digging deeper.

You need to know whether this property is a good deal or not. You can only make this call if you know all the information about this property. For example, how does it compare with those that are currently in the market or have been sold? This quick check alone not only helps you avoid overpaying but also helps you in negotiating down the price. You can easily get this info from listings on realestate. com.au.

You also need to establish if this type of property is in good demand for the suburb. How much will it rent for? Who will rent it? Can you offload it in a hurry in the worst case scenario? Will you be able to borrow against this property? You may have already gotten a pre-approval but this doesn't ensure that you will get a loan if the lender decides not to lend against this property.

Failing to do all this upfront research will ultimately lead to you buying an underperforming property at best and a money-losing investment at worst.

Research doesn't have to be a lengthy process, but you need a clear idea of what makes for a good investment property. Creating your investment criteria and going through each checklist when assessing a property will ensure you're covering all the bases.

Doing too much research

The flipside of doing too little research is doing too much. Going overboard with research often leads to analysis paralysis where you're unable to take action as a result. When you over-analyse each deal, you can become overwhelmed by too much information. This not only creates massive confusion but also fear that you're making the wrong decision.

This is a scourge that afflicts not just the beginner investor, but also seasoned players. Just like doing too little research, the best way to avoid doing too much research is by creating a due diligence checklist. …

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