For most people an investment property will be at least the second most expensive purchase that they will make. Then why do people buy property with less research than buying a blu ray player. In fact some of the people I have spoken to do a lot more research on their blu ray players.
Normally these people tell me the following
I was misled
They told me at the seminar that the property would quadruple in price,, now it worth less than I paid for it.
They told me it was under market and at was $100,000 more the market, I hate the crooks
I brought what I was told was a great property in America only to find out it was in a gang ridden slum in Detroit.
Don't get me wrong I hate to see people who have lost money and have been cheated especially by people who claim they are their to help.
However if you lose money because you have not done your due diligence in most cases you largely have yourself to blame.
So what can you do
As a starting point go online and search for similar properties on line. That will at least give you an idea of the value of the property. People often ask me what do I do. Well firstly I use the internet for research, not only do I look at properties on line I read as much about the area as I can find. I then go to the area and look at everything on the market. For example when in 2004 I started buying properties in Christchurch New Zealand I spent a great deal of time working out the ideal suburbs then when I went there I sent three days inspecting 36 properties that's what you have to do its not rocket science, but it does require work.
If its in Australia go and look at the market yourself. The price of a flight and accommodation are a tiny investment compared to losing money in a dud investment. Other things can include paying for a number of online services to assist
However nothing beats using your eyes to inspect properties. Then if you are still uncertain pay for a sworn bank valuation if it costs you $300 again if it turns out that its $50,000 over priced its a small price today.
I will also write about doing due diligence in the United States.
Remember property investment can be very rewarding but like anything it still requires effort on your part to gain the knowledge and educate yourself.
Normally these people tell me the following
I was misled
They told me at the seminar that the property would quadruple in price,, now it worth less than I paid for it.
They told me it was under market and at was $100,000 more the market, I hate the crooks
I brought what I was told was a great property in America only to find out it was in a gang ridden slum in Detroit.
Don't get me wrong I hate to see people who have lost money and have been cheated especially by people who claim they are their to help.
However if you lose money because you have not done your due diligence in most cases you largely have yourself to blame.
So what can you do
As a starting point go online and search for similar properties on line. That will at least give you an idea of the value of the property. People often ask me what do I do. Well firstly I use the internet for research, not only do I look at properties on line I read as much about the area as I can find. I then go to the area and look at everything on the market. For example when in 2004 I started buying properties in Christchurch New Zealand I spent a great deal of time working out the ideal suburbs then when I went there I sent three days inspecting 36 properties that's what you have to do its not rocket science, but it does require work.
If its in Australia go and look at the market yourself. The price of a flight and accommodation are a tiny investment compared to losing money in a dud investment. Other things can include paying for a number of online services to assist
However nothing beats using your eyes to inspect properties. Then if you are still uncertain pay for a sworn bank valuation if it costs you $300 again if it turns out that its $50,000 over priced its a small price today.
I will also write about doing due diligence in the United States.
Remember property investment can be very rewarding but like anything it still requires effort on your part to gain the knowledge and educate yourself.
