Real estate is a tricky business and there’s a lot of articles out there telling you what you should and shouldn’t do. Some of them though, are fake news. Or at least news without the research to back up what they’re saying. Luckily for our customers, we know a few things about real estate and what myths you need to stop believing.
- You can get rich quick
This only happens on reality television and those shows are giving new investors/aspiring renovators the wrong idea. Renovation and auction TV shows are highly publicised and the faces in the crowd are there for window dressing.
In reality, property investment, no matter your strategy, requires patience. If flipping houses is your game, the process is likely to take months instead of weeks. Real estate is about making calculated moves, not doing a rush job and slapping an expensive price tag on what you fixed up.
- Agents are only interested in commission
It only takes a few bad experiences to spoil the reputation of a lot of good real estate agents. They aren’t just interested in their commission; they’re interested in helping you sell your house. They go to work every day because they love their job. The agents who drive shiny cars and wear nice suits have had a lot of experience and worked their way up the ladder.
- Any property manager will do
This one will get a round of horrified looks. A good property manager isn’t easy to find. So don’t look at listings on Gumtree. Ask around and get recommendations. Other property investors are willing to tell you about good service when they experience it.
- Inspections can be passed or failed
Not so. It’s an inspector’s job to go through the property and mark what’s good and what needs improving. If there are more crosses than ticks, you have a reason to be nervous.
- Renovation before selling equals bigger profit
Age doesn’t justify total replacement unless your appliances are old and busted. Sometimes a coat of paint and new carpet is all you need. Real estate is more than a pretty facade; you must consider location and lifestyle as well.
- CBD is the place to invest
This depends on who your ideal tenant is. People ideally want to live close to work, especially when the office is in the CBD. But will a family be looking for an inner-city apartment? Not likely. Will a mechanic set up shop in the city? Also not likely.
You must also think about rent. Prices are soaring, leaving office spaces and apartments empty. This burns a hole in property investor’s wallets. Regroup and rethink your strategy.
- My property price will only increase with time
Not necessarily. Real estate prices depend on market trends and demands from customers. If the market drops, so will the value of the property. And expensive price tags drive potential tenants away.
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