3 Property Investment Mistakes To Avoid
There are many mistakes that can trip the unwary when investing in property.
Today I will be sharing 3 common mistakes made by property investors.
In addition you can download a checklist of more property investment mistakes at the end of this article to expand your knowledge and help you succeed on your property investment journey.
1. Buying the wrong property type.
You need to undertake plenty of research or engage a reputable property provider to ensure you select the right property type at the right price. Once you have purchased the wrong type of property there is really not much you can do to improve your returns, therefore it is critical to ensure you buy a property that will appeal to tenants and will deliver strong capital growth as well as excellent rental returns.
The right property in the right location will have quality tenants lining up to pay a premium for your rental property.
Getting this right can dramatically increase your investment property returns, putting more cash in your pocket in the long run.
2. Poor ownership structure/s
Getting ownership structures wrong can mean missing out on the full tax benefits that you are entitled to.
You could also incur a double hit of Stamp Duty as result of incorrect structure at time of purchase.
For those buying with a friend or spouse, getting the wrong ownership structure at the start will usually end in tears.
A relationship breakdown can often result in a forced, premature sale of your property, which often leads to a loss in profit, which could be avoided by getting the structure right at time of purchase.
3. Incorrect loan structure/s
It is quite common for inexperienced bank staff or brokers to set up loans in the wrong structure. You may also miss out on full tax benefits if you get this wrong, in addition to the possibility of being hit with loan fees that were totally avoidable.
You may also miss out on buying your next investment property when the timing of the market is right, due to incorrect loan structures causing lack of flexibility and/or borrowing capacity.
The above 3 tips are a small sample of content from our main article “7 Mistakes Property Investors Must Avoid”
Download your Free Copy today
Any Questions? Ask Darryl Here
About Darryl Simms
Darryl Simms specializes in helping individuals invest in property for less than a latte a day, reduce their tax and create enjoyable lifestyles.
Latte Property has a large following of successful property investors who have enjoyed professional guidance in the purchase of quality new apartments, new townhouses and new homes.
Darryl is also the Author of “50 Must Know Property Investing Tips” and is currently busy writing his next Property Investment publication.
Darryl’s favourite quote is:
“Try not to become a man of success, but rather try to become a man of value” – Albert Einstein
Contact Darryl at www.latteproperty.com.au/ask-darryl