Advice
Most popular mistakes made by new real estate investors
29/11/2018 10:28 | Source: yourmortgage.com.au
Regardless of age, all first-time real estate investors are prone to making the same mistakes. Here are some dos and don’ts for new investors.

Most popular mistakes made by new property investors

1. Don’t think you can renovate yourself if you don't have skills

Investors often look for cheap properties they can fix up, but don’t count on major renovations being done cheaply if you don’t have the know-how or experience.

2. Ask important questions 
This is not gambling money away; it’s a significant business decision. So make sure you ask yourself: how much money do I need? What’s the return going to be? Is this the best place for my money?

3. Do your research 
There’s a whole raft of things you should be looking at but very few investors undertake the actual due diligence on what it’s going to cost you to hold a property.

4. Don’t believe interest rates will stay low forever 
The past six months have proven that interest rates will only shift upwards from their current lows. Don’t get complacent – knuckle down and secure what you have as quickly as possible.

5. Don’t let emotions cloud judgment 
The whole lead-up process to choosing that first property can be emotional, but you must take the emotion out of it. So many people buy a property because their friend told them about it, because they liked the marketing, or it’s in the next suburb and they drive past it every day. There’s an element of laziness too. Go out and do some hard yards – again, more research.”

6. Pay credit cards on time and avoid overdrawing savings accounts
It does not demonstrate a responsible attitude to finance and lenders are less likely to loan money to someone whose accounts are ‘irregular’. ” We recommend you ensure your account conduct is ‘clean’ for at least three months prior to lending, and preferably six months, as lenders can and do ask for savings statements for this period for first-time buyers.