Property investment is a huge decision and can be exceptionally rewarding. You will have ups and downs and face challenges from finding the right property to screening possible tenants. Planning and research are crucial if you want to make it big in the property game.
When property investing goes wrong
Good research helps to prevent bad investment decisions. Some investors however have failed to protect themselves and have paid the price. Read the following stories and ensure you can avoid such misfortune:
Tonya McGinley, a Brisbane single mum learned the hard way not to let emotions cloud her business decisions. She let one family, who was recommend by one of her existing tenants, to move in without paying bond. The family had just arrived from New Zealand and needed somewhere to live. Tonya sympathised with them and agreed to let them rent the home.
She didn’t experience issues with them at first. Problems with payment soon began to emerge after the first six months when the father lost his job. Eventually, the family was so far behind the payment and confessed that they couldn’t afford to stay in the house anymore. The father promised to pay the rest, but “pulled a midnight run”, leaving the property in a bad state and the landlady up to her neck in debt.
There’s buyer’s remorse, then there’s remorse from not buying. Lauren Day from Sydney passed up an apartment on Sydney’s lower North Shore because of fears it could cost her too much money to hold. While she considered buying the property briefly, she didn’t pushed through with it. The property was sold for $745,000. One year later, she found out that an apartment in the same building with almost the same style was sold for $930,000. In just a little over 12 months, the apartment fetched gains worth $185,000.
It’s the stuff of nightmares for many investors. Imagine coming to inspect your property only to find out that it has been turned into a drug den. Trent Lister and his mom experienced exactly that. When they walked into their Geelong property, they found the home trashed from the outside. When they called in the police, they confirmed their worst fears — the home was completely destroyed and converted into a grow house.
Trent said there wasn’t anything suspicious about the tenants when they came to him two years ago. It turned out that on checking, their bank statements, licenses, Medicare cards, were forged. Unfortunately, the incident happened before he had updated his insurance policy, so he had to dig deep to pay for the damages.
Solid research goes a long way
These stories are not meant to scare you off, but to help you understand the importance of solid research when it comes to property investing. Sometimes things can simply go wrong but with research to back you up, and the right advice you’ll stand every chance of building a significant portfolio and avoid bad investment decisions.
Our comprehensive 44-point checklist weeds out lacklustre property options. With a solid research team working with you, you can identify the best properties for your portfolio. Ring us now to know more on how we can help pick the right property.