The investment game is tough and if you’re just starting out, it’s easy to fall into marketing traps.
Here are four property investments that may trick you so make sure you take your time reading the fine print:
Off the plan developments. There are significant benefits to buying off the plan, including no stamp duty, depreciation opportunities and the potential need for a smaller deposit. But some risks could cost you, too. Watch out for developer profit margins and high selling agent commissions, which can add 25-35% to the market value of a property. In many cases these margins can far outweigh any savings in stamp duty, slowing down your capital growth.
Serviced apartments or student accommodation. Lenders can see these types of specifically-zoned properties as higher risk, so they might make it harder to source finance and sell later down the track.
Foreign property markets. There's been a lot of editorial inches on the opportunit...
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