Buying property – what NOT to do
There’s plenty of people and lists that will tell you what to do when buying investment property – well, here’s a list of things you should try to AVOID.
Getting emotionally involved
Investing in property is best done with the head – not the heart. Look at the facts and figures not that the kitchen would be the perfect place for you to make your grandmother’s salsa recipe. You need to consider the rental yields in the area. You need to make sure of the tenancy rates. Look at what is close to the property; is it close to schools, public transport & shops? The property might have a colour scheme you love but that shouldn’t matter to your investment.
- Blowing the budget
Before you look into investing, be sure of how much you have to spend and stick to your limit. This is especially important if you choose to buy at auction where it is easy to get caught in a bidding war. It is essential to know you will cover mortgage repayments, and while the monthly rental will assist, you will still have to cover any shortfall.
- Not budgeting for all the costs
There are a number of costs associated with the purchase of a property – stamp duty, legal fees, mortgage fees – all of which will add to the total cost. There may also be building inspections, valuation fees and other costs. While these are often added to the mortgage, it is essential to know all these costs so you stay within the limits you set yourself.
- Going it alone
Investing in property is a big decision and one that can help secure your financial future. For that reason, seeking advice and support is sensible. You don’t have to use Accrue Real Estate, but at least come in and chat to one of our experienced staff members to find out how we can help you turn your financial dreams into reality.