What are some common property investing mistakes pt.2

Trying to time the market:

First things first...timing the market in the scheme of things will most likely be irrelevant in the long run (which is why most people buy property...for the long term gains as this generally occurs with each property cycle the market goes through). If anything, it is really time IN THE MARKET that matters most!

Buying off the plan:

Off the plan (OTP) isn’t really a favourite strategy of ours. Not saying you can’t make money from these but be very very careful. Possible pitfalls are: The final bank valuation coming in much lower (meaning you need to chip in more of your cash make settlement), additional repairs required due to lazy developers (Opal Tower in Sydney is a great example of this), sometimes your paying a premium (generally to the developer) for the same product as direct comparables in the same market...Honestly, the list goes on & on. So be seriously careful!

Buying in a hotspot:

The concept of finding a ‘hotspot’ is like trying to speculate which stock is about to experience short term growth. Instead of focussing on short-term gain, like with property and the nature of this asset, you should be taking a long term view for long term growth - Gains in property are made in the long run. Finally, when looking for a place to buy, consider the facts and not peoples opinions (always cross check!)

Property management:

These amazing people are your foot soldiers on the ground and can make your life so much easier. Selecting the wrong property manager can lead to lost rent, damaged properties or even potential legal repercussions should your property not be compliant or safe if a tenant is injured. When you own multiple properties, having that one point of contact can give you valuable time back - But definitely do your research (interviews and word of mouth) before starting with one.