Verona Pinder's blog : 3 Things to Consider Before Buying an Investment Property
Looking to get your foot in the real estate
market in 2021? Don’t worry, you’re not alone. An Australian study from Canstar
magazine found that more than 43% of Australian’s were hoping to expand their
property portfolio in 2021.
Before diving headfirst into property investment, there are a few important things that you need to consider. Property investment is often seen as low risk strategy to grow your money over an extended period of time. However, when not done properly property investments can have all the same pitfalls of high-risk investment such as stocks. So, before investing in property in 2021, here are a few things that you should be aware of.
1. Factor in Your Forgotten Costs
Before buying an investment property – or any property for that matter, you need to consider all of the hidden costs involved. Hiring a Quantity Surveyor, paying loan fees, stamp duty, and council rates are just a few of the added expenses that must be considered before signing off on a new property.
2. Is the Area on the Up and Up?
Property investing can be one of the safest investments that you make with your money. However, in the wrong area, that investment can actually end up losing money over time. Before buying a property, make sure to research any future development plans in the area such as highways, new roads, or public transport links that may actually harm property value.
3. Negotiate with Confidence
In real estate, everything is negotiable.
Before buying a property, do your homework to understand all of the factors
that you can use as a bargaining tool when it comes time to talk finances.
Factors such as time on market, renovations required and property service fees
can all be used to negotiate a lower rate with your realtor.
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