Believe it or not, there are common investment mistakes that seasoned investors make everyday. Investing in property is a big decision, and even a small mistake can cost hundreds of thousands of dollars or slow your investment goals down by years.
At PropHero, we care about investors and want to democratise property investment for everyone. That’s why we’re giving you the lessons we’ve learned over the years so you don’t make these same mistakes.
Let’s get into it.
Mistake #1. Using your emotions to guide you
It sounds weird. We know. But buying property with your emotions is one of the biggest mistakes we see many investors make everyday.
Maybe they want to invest or buy in an area close to home. Or maybe they feel the latest property they saw was made for them.
All we can say is buying with your emotions makes it harder for you to assess a property in an objective way. Failing to assess the location of the property and whether it might be impacted by climate change, or the location and how the price might impact your ability to buy future properties are some of the biggest mistakes we see people make. And that leads us to the second mistake…
Mistake #2: You do not have to invest in property where you live
With services like PropHero, you do not need to invest in property in your local area anymore. It may be tempting to go to open houses in your local area on the weekend to see if you can snag a deal, but it’s really not necessary.
If you are focused on only purchasing in your local area, you are cutting yourself off from some the best deals you can find. There are properties in cheaper locations all around Australia, but you won’t be able to access them if you only want to purchase in your existing state.
If you’re interested in learning more about where to buy, you can download our latest on-demand webinar here.
Mistake #3: You’re not checking the property for its biggest risks
If you are only concerned with price and want to snag a deal as quickly as possible, then you may not be giving yourself enough time to do your due diligence with the property.
There are over 200 variables our team checks with every property we purchase for clients, and if a property doesn’t make the cut, then we simply won’t purchase it.
Doing your due diligence and checking the property for the basics including flood and fire risks, noise, infrastructure projects and macroeconomic conditions will make a massive difference to you succeeding in growing a profitable property portfolio
Every year, we assess 18,000 properties, but we only purchase 500. This is because due diligence is such a massive factor for us. If you’d like to find out more about this, you can chat with our team here.