Last night's "Property Climbers" television episode featured two young woman entering into a partnership to buy a rental investment.
Regrettably, I did not record this program. I wish I had.
If I ever run a seminar on rental property, I would then be able to show this episode as the perfect 100% wrong way to go about this sort of investment.
From failing to draw up a proper partnership document to looking at the wrong sort of property, failing to make any allowances in their costings for rates, insurance, and any other expenses apart from their mortgage interest, to relying on the advice of a real estate salesperson (who generally know nothing at all about what constitutes a good rental investment) I cannot think of any mistake that they did not make.
Their crowning achievement was to sit down in front of the vendor's agent and say "We'll make an initial offer of $275000 and go up from there". Hardly the right opening gambit if they want a bargain.
Bunnys.
I'd love to hear how they view their "investment" twelve months later.
Regrettably, I did not record this program. I wish I had.
If I ever run a seminar on rental property, I would then be able to show this episode as the perfect 100% wrong way to go about this sort of investment.
From failing to draw up a proper partnership document to looking at the wrong sort of property, failing to make any allowances in their costings for rates, insurance, and any other expenses apart from their mortgage interest, to relying on the advice of a real estate salesperson (who generally know nothing at all about what constitutes a good rental investment) I cannot think of any mistake that they did not make.
Their crowning achievement was to sit down in front of the vendor's agent and say "We'll make an initial offer of $275000 and go up from there". Hardly the right opening gambit if they want a bargain.
Bunnys.
I'd love to hear how they view their "investment" twelve months later.
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