Towards the end of last year, we highlighted what to avoid doing in property investment with our 7 mistakes property investors make article.

With interest in property investment still strong, and more people thinking about using property to reach their long-term financial goals, here are 7 more mistakes real estate investors need to avoid:

1. Over stylising the property

If the property needs a bit of work done to it, it’s very easy to get excited and over stylise; avoid bold coloured paint and designs. Investment properties should be appealing to the widest possible range of people, so yes, enhance the property with a stylish makeover, but keep it neutral and don’t over capitalise on renovations.

2. Doing maintenance and repairs on the cheap

The old adage of ‘you get what you pay for’ springs to mind with this one; we’ve seen too many property owners skimp on a professional job, and have to pay more later down the line to get it fixed. Smaller maintenance and repairs can probably be done by an experienced general handy man, but for larger jobs, get a qualified professional in.

3. Inadequate insurance

There are lots of companies now offering landlord insurance, but read the small print and check what is and isn’t covered – for instance, are you covered for loss of rental income? What about malicious damage or accidental damage?

We recommend you use a specialist landlord insurance provider – believe us, it’s worth paying a bit extra if ever you are in a situation that you need to make a claim.

4. Selling too soon

Property is a long-term investment, and just because the property market takes a down turn, it doesn’t mean you should sell; the most important thing is to know your strategy and factor external influences and risks, such as interest rate rises into your budget at the planning stage. That way you will reap the rewards later down the track.

5. Getting complacent

Once your tenants have signed on the dotted line, and the money is coming in, it’s easy to get complacent; keep on top of maintenance and any other issues your tenant may flag. Also, regularly review your finances, and look at ways in which you can capitalise on your investment. Are there improvements to increase rental return? Can you release some capital and expand your portfolio?

6. Relying on what ‘a mate said’

Talking to friends, and colleagues is great for general background information, but only experienced specialists will be able to give unbiased, reliable advice for your situation. Financial specialists will advise on how to gear your property and what you can claim for, and a property management company will make sure you are operating within the law.

7. Do it all yourself

There are a lot of things you can do yourself, and there are a lot of other things you can do to make your life a lot easier; using a property management company is one of them! They take stress out of finding and managing tenants, sorting out maintenance and much, much more, meaning you can relax knowing your property is in good hands. The positive is, this is a tax-deductible expense.

Get in touch to learn more about how we can help with managing your property. Our experienced team loves to talk and share its knowledge! Give us a ring on 02 4954 8833, send us an email to mail@apnewcastle.com.au or pop into our Cardiff office for a chat.

Check out our Facebook page for more tips and ideas.