Thinking about investing in property? While it can be lucrative, it’s not as straightforward as some might think.

So what are the risks when it comes to property investment? And what are the common mistakes that can be avoided?

In this episode of The Property Couch, Australia’s property experts Bryce Holdaway and Ben Kingsley discuss what not to do when investing in property, including common property investment mistakes.

When it comes to investing in property, Bryce says there are four ways you’re going to “pay” for property: paying too much, procrastination, buying the wrong asset, and professional advice.

Paying too much for the property is obviously a costly mistake, as you’re paying more at the transaction stage but also the additional cost affects interest over the lifetime of the loan and further increases the cost of acquisition.

Procrastinating means waiting for things to change. Maybe the market conditions will change, maybe the government will change regulations. All these things end up costing you time which could have been spent paying off the property.

Buying the wrong asset often doesn’t reveal itself as a mistake until many years have passed. Unfortunately, by this point it’s often too late to change and all that time is lost—sometimes resulting in a negative investment.

And finally, whether or not you pay for professional advice to aid the property investment process. It might mean you pay more upfront, but if that pays dividends down the track then it’s all worth it.

Bryce and Ben’s top tip for property investors? “Remember, the price is what you pay but the value is what you get.”

See The Property Couch guide to what not to do when investing in property, including common property investment mistakes: https://www.realestate.com.au/advice/the-4-ways-youll-pay-as-a-property-investor/

Read more of our budgeting tips and tricks: https://www.realestate.com.au/advice/finance/budgeting/

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This information is of a general nature and does not constitute professional advice. You should always seek professional advice in relation to your particular circumstances.