While hot property markets can create opportunities and excitement, you still need to be smart in your property investment decisions to avoid potential pitfalls.
There is a real estate buzz. The property market is hot, with properties selling as soon as they are listed in many areas (sometimes without even being advertised), resulting in a shortage of stock, which is ultimately one of the main driving factors that increases property prices. However, while hot property markets can create opportunities and excitement, you still need to be smart in your property investment decisions to avoid potential pitfalls.
Here are some smart property investment tips for buyers and sellers:
- Consider buying a property in an area you are familiar with, as it will reduce your research time.
- Get online and check recent sale prices.
- Research the weekly rents for similar properties that you are looking to purchase to determine the potential income that can be generated and your return on investment (ROI).
- Take the time to find out what you need to do to be a successful buyer or seller.
- When selling a property, do not get caught up in the hype that you do not have to do anything; taking the time to improve, prepare and stage a property for sale can potentially add tens of thousands to the sale price.
- Do not always go with the cheapest option. Ask for testimonials, compare prices, but more importantly, look at outcomes, statistics, and results.
- Understand the pros and cons of the different methods of buying and selling.
Are you ready to sell or buy? Do you need advice? If you are ready to sell, buy or invest, the team at Crown Property Management is just a telephone call away to assist and support you.
Disclaimer: Do not act solely based on the material contained in this newsletter article. The information and statements herein are general comments only and do not constitute or convey advice per se. Seek independent professional advice before making any decision or acting. | Adapted from ‘The Investor’ June-July 2021 issue by PPM Group