Poor Property choice Owner-occupiers are the people that push...

Poor property choice – Owner-occupiers are the people that push up prices and not investors.

So, it stands to reason that a property that appeals to owner-occupiers will be more popular than investor stock. You want to look at the suburb demographics and what the most common type of dwelling is, there's no point buying a studio unit in an area where people predominantly want townhouses.

If you buy a property that appeals only to investors or a distinct group of people i.e university students your opportunity for capital growth is limited.

Basic steps to mitigate this.

#1 Start With One Good Investment (By following the tips on the next page)

#2 Always Buy Below Market Value. (difficult to do but possible)

#3 Make Money When You Buy. ...

#4 Avoid Cross-Collaterisation. ...

#5 Work Closely With Your team of property professionals i.e Broker, solicitor/conveyancer etc.

#6 If you're stuck engage a Buyer's agent they are worth their weight in gold.