It’s common to make mistakes when buying an investment property, especially when it’s your first time, but a few common mistakes that you can avoid are:
No House Inspection
Always, always, always get a proper house inspection. How many TV shows do we need to watch to highlight the point that you need a house inspection, no matter what? Yes, if the house turns out to be perfect it may feel like a waste of money. It’s never a waste. You will have peace of mind, and in the worst case scenario you have a very good reason to walk away, saving a lot of money and headaches. Get an independent house inspection, regardless of the age of the property. If the property is brand new, you may feel that you can skip it, but really you can’t be too sure.
Put your money where you mouth is
The biggest mistake when it comes to money is not knowing what you can afford. You need to know how much money you have to buy a property, and what sort of property you can afford. You also have to understand that just because it sounds like a deal, doesn’t necessarily mean it is – see the above point about house inspections. You also need to know what fees you are going to have to pay during the process – legal and agents, and then there are the ongoing costs that are required after you purchase the property.
Check your emotions at the door
Never buy a property with emotions running high. If you are desperate, angry, or head-over-heels-in-love, you have put yourself in a position where you cannot think clearly about the purchase. It also puts the seller in a powerful position, as they can play your emotions. When purchasing an investment property, it’s all about the numbers so leave your emotions at home.
What is the biggest mistake you made when buying an investment property?