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The
Propertybuyer

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Hear the latest weekly insights into the property market via podcast by Rich Harvey, CEO and founder of Propertybuyer.

 
Fri 14 Jun '24 with Rich Harvey Tax Effective Property Investment Strategies
 
 
Fri 24 May '24 with Rich Harvey Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24 with Rich Harvey Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24 with Rich Harvey How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24 with Rich Harvey Why Invest in Melbourne?
 
 
Mon 26 Feb '24 with Rich Harvey Sydney’s Inner West – Hotspots and Outlook for 2024
 

 

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Propertybuyer Blog
Property advice, market updates & more

 

4 property investment traps to avoid

August 5, 2014 / Written by Rich Harvey

 

By Rich Harvey, CEO, propertybuyer.com.au

Making money through property investment isn't rocket science, but that doesn't mean it won't require careful planning and research to succeed.

There are plenty of ways investors can go wrong and lose money, so it pays to do your homework and partner with industry professionals who can assist you.

The following are four common ways investors end up doing a real number of what could otherwise be a lucrative Australian property investment.

Picking the wrong area

The location of your investment property will be just as important as the home itself.

Is it in an area that's experiencing rising home values? Is it near popular amenities that will attract renters?

Remember that when you buy an investment property, you're also buying a stake in the local neighbourhood.

Opting for the wrong type of property

Then again, don't think a quality neighbourhood means you won't need to focus on the property itself.

If you purchase a detached house in an area where units are all the rage, chances are you're going to find yourself with the short end of the stick.

It's important to research what kind of properties are in demand so you can capitalise on this. Simply scooping up any real estate available is a recipe for disaster.

Going it all alone

There's no rule that says you need to hire a team of professionals to help you when you buy a house in Australia, but not taking advantage of expert knowledge is a mistake, especially if you're relatively new to the property game.

The right buyers agent can help you find property, as well as negotiate a fair price. And a property manager can stay on top of your investment while you focus on other pursuits, reducing the time and energy you need to devote to your real estate.

Choosing the wrong tenants

Renting out a home can be a great way to set up a cashflow positive property and add a steady stream of income to your own.

However, the wrong tenants can undo all your hard work. Make sure your property appeals to the types of tenants you want, and take extra care to select men and women who seem like they will take care of your property and stay current with their financial obligations.

The Propertybuyer
Podcast

 
Fri 14 Jun '24
with Rich Harvey
Tax Effective Property Investment Strategies
 
 
Fri 24 May '24
with Rich Harvey
Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24
with Rich Harvey
Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24
with Rich Harvey
How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24
with Rich Harvey
Why Invest in Melbourne?
 
 
Mon 26 Feb '24
with Rich Harvey
Sydney’s Inner West – Hotspots and Outlook for 2024
 

 

Listen to many more
podcasts on our
Podcasts page.