Common investor mistakes witnessed by Badenoch Real Estate
30 June 2016
- Investors commonly forget to use an offset account when purchasing a home to reside in that they will eventually move out of and then keep as an investment. The offset account allows you to access the funds for another purchase if required.
- Numerous investors do not have depreciation schedules or do not update their old depreciation schedules missing out on $1000’s of dollars. For example – I recently listed a property for rent that was previously managed by another agent and the investor was requesting a discount in our commission which in turn might save them $100 a year. After our initial meeting with them we managed to help them claim $20,000 in missed depreciation – the $100 was worth the investment!
- No regular pest inspections – termites in Canberra can do terrible damage. We strongly suggest that all townhouses and houses located within an established suburb should have a termite inspection completed every 12 -24 months.
- When buying off plan most investors do not complete a thorough pre-settlement inspection. It is important to go through the property thoroughly. We can assist you free of charge and this can save you time and ensure all defects are reported before you settle.
- Investors sometimes rush their purchase and buy anything that becomes available around the time they’re looking. Investors need to consider whether the property is desirable to tenants, close to transport and amenities, and is in an area of high future development and growth. Many investors buy in the same street or suburb just because they can see the property. Be open to investing in other areas and states. Speak to us before committing.