He said home buyers and investors alike could get so excited about buying a property that they often made a bad emotional decision rather than a good financial one.
“Often they don’t realise that they have purchased the wrong property until they go to sell or tenant the property many years later,” John said.
“Unfortunately, a poor purchase may result in little or no capital growth or rental income for months at a time, thereby leaving you out of pocket
“Buying overpriced property can set you back years financially.”
Here is John’s best checklist for home buyers and property pitfalls:
• Know what you are really buying and what it’s really worth.
• Is it attractive to other buyers and tenants – close to water, work, leisure and transport?
• Buy the right property at the right price.
• Don’t buy the cheapest property in the cheapest area.
• Avoid an emotional purchase at a price you might later regret.
• Buy in an area with limited available land but plenty of buyer and rental demand.
• Have an emergency cash buffer so that you can meet your loan repayments if interest rates rise.
• Sort out your finance before you start searching for a property.
• Have a clear investment plan in place, so you’re always focused on the bigger picture.
• Use professionals who can provide real guidance in your decision process.
• Focus on buying well in the first place, it will save you thousands.
For more info, call John on 9771 4555.