How to not get screwed over when buying property

How to not get screwed over in property, the warning signs of scams and how to do your property research

Warning signs of scams

Off the plan/cold calling companies Buying off-the-plan, or purchasing a property that has yet to be built – The time between the sale and completion and settlement of the dwelling means that "buyers are essentially paying today's prices for a product in tomorrow's market" Makes sense in what looks to be a rising market – most off the plan are oversupplied at the moment though Likely be overpaying Inbuilt commissions of up to $40,000 Sales tactic of reciprocity – “I do something nice for you, so you feel the need to do something nice for me” Can blind to shortfalls in a property Free trips/offers with the property Sales pitches – Tax breaks, gurantees on rent and future growth Government concessions – FHOG Negative gearing/tax breaks being the focus point of the sale If tax is the only gain from the property, then look elsewhere No point paying $12,000 into a property to get a maximum of $6k back Better to put money into something that will grow Plus, sometimes they are only negatively geared as they are overpriced e. – Rental yield is low Guarantees Rent – Rental returns sometimes have 12 month rent guarantee Seems nice now, but what happens afterwards? Growth – The one unknown Assume that property will grow with inflation

Due Diligence – What you need to do to find a property

Work out your property criteria Research your suburb and the surrounding area Walkscore Microburbs Research Rental Income per week SQM Research Calculate (potential) Rental Income Research similar sales in the area DSR Data Soldprice Determine the property’s value Research the history of your home Confirm the property’s value with a free RP Data Valuation RP Data / Corelogic Research if your home has gone swimming (i.e. flooded in Brisbane)