Top 3 property investment mistakes and how to avoid them
Investing in Surfers Paradise property can be a rewarding experience. But, like any form of investment, sinking your money into the housing market isn't an exact science. There isn't a single tried and true method that applies for every scenario in every location, so it can sometimes feel like you're sailing rudderless.
Whether you're an overseas investor looking to make a profit from the buoyant market in southeast Queensland, or a seasoned professional, just a few simple mistakes can set your property investment dreams back a step. It's worth knowing what to avoid and what to stay on top of in the property investment game.
Here are some of the most common mistakes that investors make when purchasing rentals in Surfers Paradise.
1. Jumping in without a strategy
In the mad rush to find a profitable investment, lots of investors can forget to sit down and carefully draw up a clear plan. Creating an investment strategy is a bit like following a roadmap. There is a final destination – or an end goal – that your property is helping you work towards. Without the map, your investment and even your finances can start to veer off track. You could even run to a couple of unforeseen bumps along the way, which you might have otherwise been able to avoid.
Before you even start looking for a property, determine what it is that you want to get out of it. Particularly if this is your first Australian property, you might want to consider how buying an investment property in Surfers Paradise can help you add a couple more to your portfolio further down the line. You can then look for an investment that suits these goals.
It's easy to be charmed by real estate in Surfers Paradise – but keep in mind that what appeals to you isn't necessarily the best option. Take the emotion out of equation and think about your goals objectively. This can help you enter the property search with a clear head and distinct idea of what you're after.
2. Skipping an inspection
Purchasing a property is a big financial venture and there are any number of decisions to make. In the midst of all these choices, investors can often skip over the obvious things, like maintenance and repair costs. You want to make sure you can afford to bring the property up to scratch without breaking the bank. While a character-full renovation project might seem like a good idea, the costs associated with overhauling the property can actually outweigh the benefits in the long run.
In the same way, you will not always have the most detailed eye when it comes to looking for structural flaws. Flaking paint and stained carpet are relatively easy to fix up or replace, but when it comes to pointing out problematic damage in the building's structure, that carefully trained eye of a builder or engineer is best. Take the time to have the property overseen by an independent inspector. They will advise you on the big concern before you purchase Surfers Paradise property, which can help you make a sound decision.
3. Doing it all on your own
Even the most experienced investor needs help. When you're juggling a number of properties in your portfolio, it becomes a lot easier for one to fall by the wayside – and this isn't good news for profits. Enlisting the aid of property management professionals, like the team at Ray White, can take a lot of the legwork out of owning rentals in Surfers Paradise. Property managers deal with everything from tenant complaints to setting the correct rent, as well as helping you achieve your investment goals.