If there is one thing we’re not seeing in Paris at the moment, it’s faux pas. So many incredible shows of athleticism, mateship, teamwork and sportsmanship at it’s best! I’m loving it.
But faux pas are something that I see all too often amongst first time investors.
Here are the 3 biggest hurdles I see for rookie investors:
- Following a mate’s recommendation and not doing your research. There are a few things here that are vital:
- Location – is it in an area that is primed for capital growth and rental demand? What the demographics? Is the property matched to the demographics? What are the growth plans for the location? What’s the potential rental income?
- Maintenance costs – how much will it cost you to maintain the property? Is it a new build or existing? Make sure you know the tax implications of both! Do you know about the NSW Building Bond? This is great for peace of mind when investing in new builds in NSW. You have to know what you’re getting yourself into.
- Your investing strategy – what are you goals, your timeframe, your budget, your tax position? You need to know these things and make sure the property works with your strategy (not your mates).
- Underestimating the costs – the purchase price is one thing but you also have to budget for things like stamp duty, strata levies, council rates, water rates, building insurance, landlords insurance, management fees, maintenance, taxes, increase in interest rates, professional fees – like conveyancer, accountant, quantity surveyor for depreciation schedule. Work it all into your cashflow to make sure those numbers add up!
- Getting emotionally attached – it’s hard not to get emotions involved, but focus those emotions on the process of investing rather than the properties you’re choosing between. Achieving a goal like this is exciting and we want you to be excited. But when you’re deciding on the property, it’s about the numbers. Which property can you buy within your budget, has the cashflow that works with your current situation and has the great potential for rental demand and capital growth? That’s what you’re looking for.
If we can help you find the property that works for you, we’d love to help.
Just email or call to book a time to meet.
Au revoir, I’m off for a pain de chocolat 🥐 before I settle back in front of the TV 🇫🇷
Michael