You make money when you buy property, not when you sell.
Which is why it’s incredibly important that you’re not paying too much when you sign that contract of sale.
But unfortunately, many property buyers and investors fall into the trap of overpaying for property.
Which is why in this blog post, we’re broken down the top three reasons you could be overpaying for property, and how to avoid these costly mistakes.
#1: You Don’t Understand The Current Market Price
The property market is constantly shifting… but are you up-to-date?
Do you follow real estate sites or keep an eye on property stats?
Things can change quickly, and it’s important that you’re aware of the latest trends.
Look at similar properties that have been sold recently to see how they were priced and how quickly they sold. This is a good indicator of supply and demand.
If properties are being sold at a slower rate, you may be able to negotiate a better price if you can promise a quick settlement.
#2: You Are Impatient
Thanks to fast internet, Uber Eats and Netflix, we’ve pretty much got the world at our fingertips.
But when it comes to buying property, patience is crucial.
Plenty of homeowners and investors have purchased a property that’s less than perfect, terrified it’s their only opportunity to enter the property market.
The reality, however, is quite different.
Property markets are cyclical and we live in a big country with plenty of other markets for you to explore. Don’t make a rash decision you’ll regret.
#3: You Fell In Love
Emotions can make us do crazy things – like get matching tattoos or quit our job on a whim to travel the world with our ”one true love”.
The same thing can happen with property investors who let their heart rule their head.
It’s vital you remember that investing is a business decision, and emotion should play little or no part in your choice
For those buying a property to live in, the same rule still applies.
Sure, you’re looking for a home to live, laugh and love with your family. But you’re also taking on a massive financial commitment.
Just because your bank or broker says you can afford a certain amount, doesn’t mean you have to borrow that much.
Interested in learning more about property?
Reach out to the property experts at Adpen! We’re constantly helping new and experienced investors enter the property market.