Our Approach » Three Common Mistakes

How can we help you purchase an investment property and avoid costly mistakes?


When purchasing an investment property most people generally work on past experiences and make
THREE COMMON (AND OFTEN VERY COSTLY) MISTAKES.

1. Choosing an Investment Property based on how you bought your own home 2. Seeking finance only through your Bank Manager 3. Finding properties ONLY through local Real Estate Agents
Why are these mistakes?
Remember when you bought your first home?

How did you feel?

It was a very emotional decision, wasn’t it?
Your bank manager will look only at your income, assets and liabilities and, based on this information, give you a borrowing capacity.

But your bank manager will not take into account:
  • Where you buy
  • What type of property you choose (old or new)
  • Whether you are getting the maximum tax benefits from the property

Your bank manager won’t tell you if another bank has a more suitable loan product for you.

Your bank manager will probably set up a principal and interest (P&I) loan like your home loan to maximise the bank’s profits.

Your bank manager will probably tie your own home and the investment property together to give the bank more security.
Local real estate agents will only look at their listings and show you the properties they have listed.
So your choice of properties to purchase will be limited.

Local real estate agents may not have (or offer you) properties that are suitable for renting and maximising your tax benefits (e.g., older properties).

Local real estate agents usually do not have the experience and expertise specific to investment property sales to help guide you in your property choice.
What could this result in?
An investment property bought with purely emotional criteria in mind.

Purchasing your own home is an emotional decision, however purchasing an investment property has to be based on Logic not Emotion.

Yes, you need to feel comfortable with the property but primarily the property is a product that you are “selling” to potential tenants.
Incorrect financing for your investment property can then prevent you from maximising your tax benefits and potentially restricts you from purchasing additional property in the future. An investment property bought in a location that might not be suitable to easily find tenants and not suited for maximising any tax deductions due to the age of the property.

 
Unknowingly, you may have just made the three most common mistakes that you could ever make when purchasing an investment property...

You can avoid all these costly mistakes by using Landsdale Property Group’s proven and simple Six Step Investment Property Program:

(1) Property Investment Consultation
(2) Property Analysis
(3) Property Review & Inspection
(4) Property Purchase
(5) Management of Settlement Process
(6) Post-Settlement Follow-Up & Support


Purchasing an investment property doesn’t have to be like walking through a minefield. We can also help you with financial planning, property financing and conveyancing through our partner network.

Landsdale Property Group will do all the hard work for you and take away the stress of potentially making the wrong decision.

We have a very conservative and relaxed approach with our clients. You will not be asked to purchase a property or sign anything until you tell us you are ready. We guarantee you will be more than happy with our services. Knowledge is power - let us empower YOU!

To find out more go to www.landsdalepropertygroup.com.au or email sales@landsdalepropertygroup.com.au