The Never Never's Of Investing
1. Never make a purchase based on emotion
Buying an investment is very different to buying a home. This kind of purchase should be a rational one, based on the numbers stacking up and a long-term plan.
2. Never rush into finance
Choosing and structuring your finance wisely can make all the difference so have everything researched and prepared before you bid/offer on a property. Rushing into a bad finance deal can greatly undermine your profitability.
3. Never underestimate the costs
Rather than guessing at what improvements or repairs will cost, get them quoted by the professionals you will most likely use. Always allow extra in your budget for issues you might encounter as renovations are being done.
4. Never rely on the representation of a third party
Yes I am talking about real estate agents. Most agents are completely honest in their work (otherwise you wouldn’t survive the business or social media for that matter). But they can only tell you what they know and what the vendor has disclosed to them – so get everything verified for yourself. A professional building and pest report is worth its weight in gold.
5. Never become overexposed
The purpose of investing is to improve the quality of your life and financial security. Taking on too much debt or a development project that overextends you is counterproductive to this aim.
6. Never think you will be making quick buck
Investing in any form is a long-term game and the returns are based on having a steady head and hand over a long period of time.
by Tanya Demello on 31 October 2014
Filed under Places