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2 problems that can ruin a new property purchase
There are two signs property investors should watch out for with every new purchase, to make sure they don't end up with a lemon.
Speaking with Smart Property Investment, Ben Handler, CEO of the Buyer’s Agent Institute, said there were two aspects of buying a property investment that can stump unwary property investors.
The first was being sure to undertake due diligence, something that Mr Handler has identified a lot of people ignore from working as a buyer’s agent for eight years.
When buying for his own personal portfolio, Mr Handler added he always is careful to do his due diligence.
“There’s been times where unfortunately I’ve ordered a strata report and the health of the sinking fund and some critical elements around how the building is maintained or issues that have been in the building before and how they’ve been rectified has concerned me,” Mr Handler said.
“It just showed me it could be a risk buying into this building, so that has steered me away in apartments.”
The second aspect that he sees stumping property investors was forgetting real estate agents are not trying to help you buy a property, but are trying to sell a vendor’s property.
“When you're communicating and corresponding with them, ... you have to be mindful that they’re always representing their vendor,” Mr Handler said.
“So, what you’re hearing from them, how many contracts are out, has there been another offer and [how] you need to increase your offer; you’ve got to be very mindful and skeptical and just conscious around what they’re telling you.
“How you’re dealing with a real estate agent is really important, and I think just knowing when to … walk away from a property; … setting that boundary of that threshold of what you’re prepared to go to.”
