Common Purchase Mistakes that may affect Property Performance

Buying property as a home for yourself or as an investment property in Perth is an exciting opportunity for many. However, it’s important to make sure that our rose-coloured property glasses are not making way for property purchasing mistakes.

What are the three common property mistakes that may impede your property performance? Read more from Thought Leaders Real Estate to find out.

Overlooking land value

A new-build may look attractive and offer all the modern inclusions, but what about the land value? Unfortunately, land value is often overlooked when it comes to property investment in Perth.

You can find the right location for your property investment in Perth with a trusted property management team and choices made on future capital growth.

What you need to know as a property investor is this:

·         Land appreciates, whilst

·         Buildings depreciate.

Bigger blocks of land may allure the potential of future rezoning and subdivision, or perhaps appeal to a family wanting a good, old-fashioned backyard.

But remember! A large block of land in the outer suburbs, compared to a smaller block of land closer to the city, isn’t always the best investment for future property value.

Confused? Your Property Management Perth team are here to help.

Buying into an oversupplied suburb

Just like goods and services, Perth property prices are largely driven by supply and demand.

This is what many property investors look for:

·         Close proximity to local amenities,

·         Close proximity to schools (particularly well-respected government schools), and

·         Good public transport links.

However, it’s the impact of supply over time that many Perth investors overlook.

In Perth, there’s many tightly-held suburbs such as Gnangara and Herne Hill in the northern suburbs and Willetton and Murdoch in the southern suburbs.

The regular buyer competition to secure properties in these suburbs can raise property prices and enable a steady growth in value over time.

On the other hand, locations with a regular influx of supply like apartments and new house and land packages means owners need to compete with newer properties more frequently.

An oversupplied area may involve owners struggling to sell their property in future at a lower value, then was purchased for.

Paying more than it’s worth

The Perth property market is forever changing, from falls to recovery, price decreases and price surges. Investors may find themselves:

·         Missing out on properties due to competition increases motivation, and their

·         Motivation equates to willingness to start/join in a bidding war.

Should you overpay for a property that surpasses it’s actual worth and value? Probably not – as it may impact the long-term property performance and waiting longer for capital growth to be realised.

Boost your property performance with a well-informed understanding of the market and with an excellent property management team in Perth.

It’s always an excellent idea to monitor the Perth property market and avoid the common mistakes that many investors overlook.

When we overlook the land value, buy into an oversupplied suburb or pay more than what it’s worth – we are potentially preventing the property’s performance.

When it comes to knowing the market, look for the Thought Leaders in Real Estate for all your property management needs and investment in the Perth property market.

Need help with property management?

Contact Thought Leaders today to see how the property management Perth specialists will boost your property’s performance.