If your intention is to win big in the property investment game, you need to understand the pitfalls that catch many entrants into the property investment market. Knowing your game plan from the beginning, sticking to it and adding more experiences to hone your strategy, will ensure the best chance of success. It is a fact in Australia that many will try their hand at property investment and fail to reach their objectives. A few will be highly successful and, if you avoid the pitfalls, you can be amongst them.
It is agreed that for most people a property-buying decision is 90% made by the heart and 10% made by the head. Naturally buying a property where you intend to live, to perhaps raise your family, needs to be a decision to buy a home that you would like to live in. This emotional decision has no part to play when you are making a property investment decision. Your judgment on a buying decision needs to be made on well-researched hard facts. The key criteria is whether the property you are intending to buy will be able to return the value gains that are your objective, inside the time frame you plan to own it. An additional question is whether the neighbour hood in which the property is located is one that will attract tenants willing to pay the rent that you plan to charge.
Planning is key in successful property investment. Taking an ad hoc approach where you deal with each issue as you face it, is a sure fire way to fail. Your whole game plan from initial engagement to final completion and purchase must be thought out and tested. You need to make sure, in advance, that you can secure credit, or pay out from your own funds, the necessary money to secure your purchase at the best price. As you are in the negotiations with the selling party, a short-term opportunity may present itself to buy at a discounted price. If you have your finances lined up and all your other checks and balances have been completed, then, thanks to your planning, you can seize the opportunity. Cash flow management is key, leaving no margin for error. So ensure you have the necessary finance in place to complete a purchase no matter how long it takes.
Avoid the common mistakes of acting too quickly without the necessary funding in place. If you do nothing at all prior to completion of the deal then you will have difficulties. Always complete your checks before committing yourself to a deal. Even if the deal you have in front of you looks like it has been made in heaven, if you have not completed your checks when the seller gives you an ultimatum, don't jump for the deal. It is better to live to trade another day. There will be more good property investment opportunities at a time that works for you. Taking too long to make your mind up about property investment decision in Australia today is risky. Having completed all your research and planning, you should set a timetable that works with the seller and stick to it where possible. If you delay unnecessarily and the deal for the property investment is a good one, somebody else will inevitably step in and take the opportunity away. What Is Investment Property