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Common mistakes that property buyers commit — November 22, 2018

Common mistakes that property buyers commit

There are many schemes available to help the nation to buy a house, such as Skim Rumah Pertamaku, Rumah Mampu Milik in Selangor, and so on. Moreoever, many people have jump onto the bandwagon of becoming a property investor. This article will highlight the common mistakes that property buyers commit.

 

Looking for free advice

Most property buyers are taking kindness for granted. Many people will ask property bloggers for advice regarding property buying. In addition, it is free advice that they do not need to spend a single cent. As a result, the property buyers will either trust the blogger half heartedly or take the advice. Then, they forget they asked for advice and they forget to thank the property blogger for giving advice. Similarly, if the advice affect the property buyer to make a wrong decision, then the property blogger will get all the blames.

 

Blindly trusting the media

Property buyers trust the media a lot where the media are considered to have the tendency to interview industry stakeholders and quote the comments for catchy headlines. People tend to believe in conventional wisdom without going through verification on the facts that are behind traditional beliefs, such as:

 

  1. Freehold properties are better than leasehold properties
  2. New properties are better than resale properties
  3. It is always a great time to purchase property
  4. The price for property will continuously increase
  5. Investment in properties is always better than depositing money in the banks

 

Do your research beforehand and be clear on what you want to achieve to avoid making mistakes that people are making.

 

Avoiding legwork

Buying a property is different from buying a car where you go for test driving before purchasing. Advertisements are placed everywhere and you can just walk into a sales gallery to book a unit in one hour. You blindly follow the property agent for property viewing and notice that the units look all the same. Therefore, you decide that it is a waste of time to go for viewing.

 

Financially overstretched

Many property buyers overstretch their finance when it comes to property investment. They become financially ignorant and listen blindly to the media, bankers and property agents that tell them they could afford buying a property. Not to forget, they get motivated when they see people with lower affordability or equal jumping into the property market.

 

Fantasy on being landlords

Many property buyers have a dream of becoming a landlord. Therefore they buy a property that is meant for rental purpose to collect monthly rental.

 

However, do bear in mind that it is not easy being a landlord. It is a hassle to manage the tenants. The rental that you collect is not worth the effort and time you spent in managing the tenants.

 

In conclusion, these are the common mistakes that most property buyers commit. Do think properly and do you your research in advance before you make such major decision that involves a huge sum of money.

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