Most Common Property Investment Mistakes

in Real-estate

It is very easy for anyone to simply follow rumors or information, especially when it comes down to investing in properties and real estate. It is necessary to find out required details that may suit the requirements of the investor and seem right. The main aim here is to ensure you stay away from all the mistakes as an investor although at times making that mistake is the only way to learn how to go about the whole thing. Following are some of the mistakes that are necessary to avoid during property investment.

Purchasing A Property Simply Because It Is Cheap

Just because there is something cheap available, may definitely not mean that it holds good value. It may just mean that it is necessary not to avoid factors while coming across a cheap property. It is very normal for things to get discounted or come down in terms of the value especially since nobody really wants it.

No Inspection Been Done While Purchasing A Property

It is entirely the rights of the buyer to carry out any inspection on the property. Some of the inspections may include pest inspection to find out any termite damage, building inspection to check for any structural problems or items that may have been broken but do not seem obvious, strata inspection to check and see how the property fees is spent in case of a townhouse or apartment complex. It is extremely necessary to check for pest or building sections when it comes to purchasing old houses since new properties may not have such issues. It is very important to spend some money to give yourself some peace of mind as well as staying away from any unnecessary surprises.

Purchasing A Property In An Area Which Has High Growth

The historic growth has little or even no indication with regards to buying a great property. It is necessary to see the performance of a suburb in the past in terms of a missed opportunity.

Purchasing A Property Just To Save Tax

It is normal at times to claim for tax deductions for any expenses made on an investment property that may help with holding costs. The tax deductions may be a superb bonus while investing in a property but that does not have to be the main motivation. If one wants a tax deduction it is important to make a loss.

Not Having A Right Plan

Many of us may spend a lot of time planning out holidays but never out financial future. It is necessary to have a good investment plan if you still don’t have one yet.

Not Checking Through With The Property Portfolio

Although investment of a property is something on a long term basis but the costs involved here need to be considered. Therefore, it is important not to fall into any trap, although it may not be possible to swap easily but it is necessary to keep checking the investment portfolio to exactly see what needs to be done to upgrade or improve the performance.

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Chris Tan has 67 articles online

Chris Tan writes for Property Malaysia, the leading property for sale and auction property portal for Malaysia and Penang properties.

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Most Common Property Investment Mistakes

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This article was published on 2012/04/14