The Biggest Property Mistakes of All Time

The real estate market of Australia, and Melbourne in particular, has been on the rise over the recent couple of years. Many are quite interested in purchasing properties and do so quite often. Everyone likes to buy or rent a property in their name Because of the relative stability this asset brings. It could be a house, a land or an apartment complex, but it does not discount the fact that people are interested in investing in the property market. Who can blame them? It is one of the best investments that one can think of.

The property market, however, is not an easy place for the uninitiated. One needs to take utmost care when dealing in the property market in order to avoid ending up with a property that you cannot re-sell or develop. There are many who break the golden rules of buying property and end up incurring substantial losses. We have rounded up the biggest and the worst property mistakes of all times to educate the property buyers  around Melbourne.

Inadequate research

This may sound simple when you see it on paper, but amounts to being quite a significant error at the end of the day. Many property buyers Melbourne, if asked the question of whether or not they do their research, will only reply in the affirmative. Everyone does research when buying their property right? Well, the answer is no. Not everyone and not enough. People might be doing research, but they probably may not be doing research on the right kind of information. This leads to the next worst possible property mistake a person can make.

Emotion over logic

More than 90 percent of property owners are guilty of this crime. It is proven that more than 90 percent of people decide to buy or not to buy a property before they even enter it. This is called the curb value. Curb value, while a good indication of the inside of the house, can be a mistake when taken as the base upon which the whole decision is made. Try to avoid making decisions based on what you see only. Houses that have a high curb appeal can turn out to be quite disastrous. The thing, is, sellers know the concept of curb appeal and work towards ensuring that it is high for their house. The other side to this story is that people may be oblivious to the financial aspect of the property simply because it looked nice. The moral of this story is that, not everything that looks nice is a great investment and not everything that sounds great financially is the best investment you can make. The key here is to think objectively and strike a nice balance between emotion and logic.

Impatient, impulsive purchases

People can be divided into three categories based on the way in which they invest in the property market; those are the impatient, impulsive investors, those that take ample time and teeter on the edge for ages and those that make the right decision at the right time. There are only a few people who strike the balance between the right decision and the right time. The worst thing that you can do when purchasing property in Melbourne is be impatient and impulsive. There are many scammers out there who can use your impatience to their advantage. The other thing that you should avoid doing when buying property in Melbourne is to take too long to make your decisions. The market is so competitive that you may lose a good property if you take too long to make your decision.

Ignoring the legal front

The legal front is another area that a lot of people ignore altogether. They do not remember to consult their lawyers or obtain legal advice until they are ready to sign a contract. Some of them, do not even run the contract by a lawyer before signing it. There are many legal implications involved in buying property in Melbourne and it is best to seek legal advice before you go ahead a purchase one. There have been many cases when people have bought lands that have zoning restrictions and been unable to build on them or develop them further. Consulting a proper, recognized lawyer is in fact, one of the first things that one should do before making any property related decisions.

About the author

Oliver Revilo