Buying An Investment Property
If you insist on buying an investment property (see Forum article), then at least try and be smart about it. Don’t buy because the development has glossy brochures, or it’s near home so you can ‘keep an eye on it’ or because it’s in a good area and one day you can redevelop the site (you won’t). Buy it because it’s a good deal!
The money to be made in property is in the purchasing not the selling. A property you pay too much for will never make the difference up no matter how long you hold it. If you want to buy, look for a property that has all the attributes, near shops, transport etc, and is selling for less. They are out there you just have to hunt for them.
In other words, you need to do your research to buy the property at a discount to market. This takes time and patience. Discounted properties are always available, you just have to look for them. One golden rule is don’t follow the mob because the mob will invariably be paying too much. As Warren Buffet says “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
POSTED: 20-Jul-2009
August 7th, 2009 at 11:15 am
Nice writing. You are on my RSS reader now so I can read more from you down the road.