BUYER MISTAKES
4 COMMON MISTAKES BUYERS MAKE WHEN PURCHASING PROPERTY Whilst most people think that they are completely logical when it comes to buying a home or investment property, unfortunately many get carried away with emotions and end up making a decision they may later regret. Property is often the most expensive transaction you do in your life and can make up to 75% of your wealth on retirement and so it’s important to try and get it as right as you can. I’m an ex accountant and so being unemotional is probably easier for me, but it’s something you can learn to do too.
B Y C H R I S G R A Y, C E O, YO U R E M P I R E
household, especially when it comes
takes 2-3 hours to inspect it, prepare
to knowing how much to pay for a
the comparable sales, do strata
property. Even if they haven’t been
checks to confirm the actual sizes
in the market or bought anything for
and then prepare a calculation.
years, they instantaneously seem to know what a property is worth.
I’m constantly surprised at how many property experts are out there, there seems to be one in every
a property is worth is to have been
Methods include basing it on what
inside lots of comparables that
the agent (who works for the vendor
have sold above and below the
told them), what a free or $50 online
property you’re targeting and to
app is telling them (the algorithm
do detailed calculations based on
hasn’t done a personal inspection),
price and yield.
what they overheard someone else saying, or just putting their thumb in the air and applying a set discount or premium. And they do this in about 2 minutes!
Paying the wrong price can set you back years or even decades as it means you’re not able to extract the equity and keep repeating as quick as you might otherwise be
My team and I have been buying
able. Compounding is the eighth
the same types of property in the
wonder of the world and the real key
same areas for over 20 years and
to wealth creation. You’ve got to buy
have bought literally hundreds. Even
the right property at the right price.
though we think we know the price, we still know there can be some
1) Paying the wrong price
The only way to really know what
emotion in there and so we pay an
2) Not taking action
independent valuer $660+ each
There’s always something that will
time we even consider putting an offer in. And even though the valuer knows the areas inside out, even he
C21 MARKET PULSE
02
CENTURY 21
stop you getting into the market. This year it’s COVID. Last year it
