Investing in real estate in Sydney is considered one of the best moves to make if you want to be financially secure and enjoy a reliable income, but there are mistakes that can be made that could ruin the whole plan and leave you wishing you had thought more carefully first.
To avoid making mistakes that could be small and irritating or huge and disastrous, learn first about the common mistakes made when investing in real estate so you can make better informed decisions that are more likely to be only right ones.
Common mistakes in property investment
Research
Often, when investors are looking for a property in Sydney they do less research than if they would when buying a car or a television, and this doesn’t make sense. Of course it is easy to see a house and fall in love with it and almost develop an emotional attachment about it; however, this is not always wise.
Asking questions that go deeper than what the house looks like is vitally important. Given that an investment is generally to be rented out, you need to ask yourself or your real estate agent a little about the suburb in Sydney you are looking in.
What kind of tenants will a house in this area attract? Is the house in a sought after location? Is this area prone to flooding, why is the owner selling? These are just some of the questions you need to ask to avoid buyer’s remorse syndrome.
Finance
Again, homework needs to be done here, and lots of it. Don’t go for the first deal that seems the most appealing. There are plenty of lenders with different loan options available and you need to be very astute about choosing the right one.
Think about your options and your long-term plan; if you think you may want to resell in a few years to try and make a profit, then don’t choose a loan that carries a hefty early payout fee.
Getting the right price
The advice and support of a knowledgeable real estate agent is a must. Again, it is important that you need to do some research in this area also. Don’t get caught up in the need to reach an agreed price on a house you must have and offer too much too soon. Be realistic and find out what the average selling price is in the area, if you go in too high you may end up stretching your budget further than is possible.
