Realestate.com.au highlights these research blunders to avoid.
- Too little research. Don’t rush in because everyone else is, no matter how attractive a property appears. Make sure you at least compare similar sales in the local market. Also check whether there is rental demand for that type of property and know if you could sell it in a hurry if the worst happened.
- Too much research: Analysis paralysis can overwhelm new investors and seasoned professionals. Realestate.com.au recommends doing a due diligence checklist to make sure your research targets the factors that matter and helps you make a decision.
- Focusing on the wrong indicators: Be careful not to focus on a single indicator in isolation. For example population growth is good news for property values only where housing supply is constrained. Population growth in an oversupplied market could see property values drop.
- Not verifying statistics: It’s true that numbers don’t lie, but sometimes statistics can suffer “anomalies” that fill you with false confidence or steer you away from the next hot spot. Check a range of statistics from different data providers to get the full picture.
Read the full story on Realestate.com.au.
Want some advice to help you sharpen your research skills? Contact us for a chat.