Having served over 3000+ property buyers in the Sydney property market, our buyers agency Sydney team have gained tremendous insight into the motivations, vision, and common aspirations of property investors, real estate agents, and other buyer’s agents. However, we have also seen the frequent flaws and blunders that many investors make as they progress.

In this article, we’ll explain some of the most common blunders we see by buyers agent sydney in the real estate industry so that you may steer clear of them on your own trip. Please don’t be shy about contacting us if you have any inquiries or feedback about what is discussed below.

Lack of a Specified Destination

As soon as the equity in their PPOR (their “principal place of residence”) is sufficient to meet financing standards, many homeowners dive into investment property ownership. It’s understandable why so many individuals are eager to dive into the world of investment property.

Instead, you should use a portfolio of investment properties as a means to an end goal of amassing a particular amount of money. In other words, you should set a financial objective such as, “I want to generate $100,000pa in passive income through property investments,” before you actually buy your investment property.

Neglecting the knowledge of Sydney buyers agents

Many people who intend to invest in real estate do not first talk to a professional such an accountant, financial planner, or broker (or even a property advisory firm).

Remember that the criteria you use to acquire an investment property are different from those you would use to buy a house for yourself and your family. If you want a return on your investment (in the form of appreciation and/or a steady stream of income), your investment property must function well as an investment.

To do so, you’ll need to use a variety of techniques, including financial models and market research, to assess any investment property you consider buying.

So that you don’t make a costly error, it’s crucial that you get as much professional guidance as possible before settling on and purchasing a house. Find out more about the 9 professionals you should consult before buying an investment property.

Thinking Too Emotionally.

As I indicated before, many investors make the error of judging investment properties by the same standards they use when selecting a primary residence.

Emotional criteria may include:

• how the home ‘feels’ upon entry;
• the property’s finishes, paint colours, furnishings, etc.;
• how delighted the buyer would be to call the home their own;
• and other similar factors.

You shouldn’t look for and choose an investment property this way. In its place, you should use data-driven, rational criteria to evaluate a property, such as:

• the rental yield of the property
• the expected capital growth of the property
• the vacancy rates of the surrounding suburbs
• the age of the property and whether or not it has a depreciation schedule
• and other rational criteria

I’ve already explained how the potential for a positive return on your investment should be your first consideration when choosing an appropriate investment property. It’s not wise to base a choice on how you “feel” about an investment property.

Inability to Measure the value of the Investment Property

I can’t count the number of investors I’ve talked to who had no idea how each property in their portfolio was doing. They were unable to give me any information on the rate of return on their investments in real estate.

If you want to get better at something, you have to start by measuring how well you’re doing at it. A property portfolio is no different; it needs indicators beyond weekly rent and cashflow to track and evaluate its capital growth. Message us if you need help figuring this out.

Our property Buyers Agents investment strategies makes winning the only option for our property investors. We make property buyers benefit both from on and off market properties. Our buyers agent strategies are unique and they produce the desired results.

One thing we will make claify is that, you shouldn’t focus so much on the noise in the media and around you; first try to reach out to your property buyers agents, real estate agent, or your buyers advocate in whatever capacity they are to you. To find out the market situation and how to profit from it.

Not properly identifying the potential hazards

Many people, as I indicated before, buy investment properties without first contacting the reliable professionals. As a result, certain dangers may be improperly evaluated or prevented.

Examples of things that investors can miss out on include: property underperformance; vacancies; tenant damage; tenancy problems; and a rise in mortgage interest rates.

All of these factors are important to think about when developing a property investing strategy, which brings me to my next point.

Lack of a strategy for building wealth over time

Many people make Mistake #1 and purchase investment properties before they have a clear idea of where they want their money to go. Of course, a goal can’t be made without a strategy… many investors don’t bother with this planning step.

It’s easy to see why having a well-defined strategy for investing in real estate is beneficial:

• You know exactly what you want to do and when you want to achieve it.
• You are aware of the actions you should refrain from taking to advance your goal.
• In addition, having a well-thought-out strategy may often expedite the achievement of financial objectives.

Lack of a sustainable financial strategy

Last but not least, many investors don’t bother to develop and follow a comprehensive financial strategy. Instead of planning for future loans, they just “go to the bank” whenever they need one, regardless of how their finances should be structured.

A financial plan anticipates the future and makes sure your funds (including loan selections and configurations like cross-collateralization) can meet the needs of your long-term investment strategy.

If you want to retire with six residences, for instance, you’ll need to arrange for six mortgages (or whatever is needed to achieve this goal, based on your own personal situation).

 It will be easier for you to do the following if you have a financial strategy in place:

Prevent possible future lending limitations. It’s possible that you won’t be able to get a mortgage in the future if, for instance, you have a lot of loans with a single bank or if you use a particularly stringent cross-collateralization approach.

Increase your debt. You may increase your retirement savings by borrowing money to invest in your own future.

Conclusion

To know the best timing for the right property in the Sydney property market, and when to take the best opportunity in property purchase, our buyer’s agent recommends that you follow the right approach for your dream property. Contact the best buyers agency Sydney for the best results.

At buyers agency Sydney, we always have the interest of our clients at the centre of our operations. Working with our experts at Buyers Agency Sydney, you can be rest assured you are getting the best deals.