How to avoid common pitfalls and mistakes when buying an investment property in Melbourne
Approximately 20% of our population buy one investment property, and of those investors, 50% sell within the next five years. Many first time investors don’t buy an “investment grade” quality property and make mistakes when buying. So what are some of the common pitfalls to avoid when searching for the ideal investment?
- Choosing a property that the banks don’t like
- Avoid buying “Off the Plan” or brand new properties
- Not being able to afford the property
- Purchasing the property in the wrong entity
- Focusing on tax benefits or high yields and not on capital growth
©2012 Frank Valentic, Director at Advantage Property Consulting for Real Estate View