One of the most common mistakes we come across and it is usually after the fact is clients being incorrectly informed as to the likely rental that their new investment property will achieve.

Many buyers rely on a rental assessment from the selling agent.  The selling agent is trying to sell them the property. This selling agent represents the interests of the vendor and not the buyer.

Many of these investment buyers have no relationship with this agent, in fact it is often the first time that they have met or had anything to do with them. Then they ask for a rental appraisal and proceed to rely on this information when making the purchase. The appraisal will usually come from a junior property manager without any written back up or straight from the selling agent’s mouth. Usually just a flippant comment:” it should rent for about $400 per week” No back up documentation or no comparable properties.

Based on this information many buyers proceed to buy the property only to be often surprised down the track that the property does not achieve the rental they were told. Then come the excuses “the rental market has changed since you purchased” or”this time of year is always difficult to rent these types of properties” and the best “if you want to rent it now you will have to drop the asking rental”

Make sure you get some independent advice about the projected rental before you buy and get it from someone trusted. Someone that you will want to use to manage your valued asset. Even if they don’t tell you the rental amount you want to hear at least there are no surprises down the track. Make sure the appraisal is backed up with some research, comparable rental evidence and by a rental agent that has knowledge in the area and about the type of property you are buying.

Hopefully with balanced advice and evidence to back it up there will be no surprises down the track and the new investment purchase will be trouble free.

David McMillan – Domain property Adocates – www.domainadvocates.com.au

If interested in learning more about this update please contact me today!

As Domain Property Advocates continues to grow I will continue to provide superior service to those choosing to use property as their investment. It is an important choice of who to choose as the one responsible to look after your property. You can be sure that Domain Property Advocates will always strive to be the best.

 

This entry was posted on Wednesday, August 6th, 2008 at 4:28 am and is filed under Buying Property, Property Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.