Keep your cool when buying the next property

To say the property market last year was pretty hot is an understatement. Home buyers and investors felt the heat.

That momentum seems to be holding as we move through the first month of 2022.

This is a good time to take stock of your position as an investor, especially one who is looking to grow a portfolio. It is still very busy out there but don’t let the massive tide of market activity pressure you into your property purchase.

Big decisions should never be rushed. Doing so, even during a hot selling season, is a critical mistake to avoid. Purchasing in a hot market requires fast decision-making but it must be rational decision-making after considered due diligence.

Buy safely, buy well. Let an opportunity pass rather than risking a rushed purchase if the proper due diligence can’t be done in time. Don’t let FOMO (Fear of Missing Out) take over because it might lead you to paying too much for a property, or more critically, buying the wrong property.

Matters you don’t want to overlook in your haste can include zoning issues, restrictive covenants, electrical and plumbing problems, troublesome neighbours, expensive special levies and obscure titles.

Undue haste might also see you buying a property that turns out to be low in demand from renters.

Be patient, be prudent but be decisive when you identify the ‘right’ property; and what you really want to avoid is regretting your purchase.

SOURCE: RE/MAX Australia