The Ten Biggest Mistakes Property Investors Make When Choosing a Property

Property investing can set you up well if you choose carefully, but it can also drain your savings if you step into the wrong purchase. After more than twenty five years helping Victorian buyers, I have watched the same mistakes play out again and again. Here are the big ones to avoid.

1. Chasing the lowest price instead of the strongest demand
A cheap buy does not always mean a good investment. Many investors grab the lowest price they can find and then struggle to fill the place with a reliable tenant. Demand matters more than the sticker price.

2. Ignoring future supply and council approved developments
A suburb might look promising today, but thousands of new dwellings already approved can crush rental growth and hold prices flat. Checking the planning pipeline gives you a much clearer view.

3. Overlooking vacancy rates
Vacancy rates are one of the most important indicators. A high rate usually means softer demand and longer periods without rent. This can hurt your buffer quickly.

4. Letting emotion guide the decision instead of the numbers
Many investors buy with their heart instead of looking at rental return, foreseeable costs and long term growth. An investment should behave like a business decision, not a personal one.

5. Forgetting owners corporation fees and special levies
Ongoing OC fees, sinking fund shortfalls and upcoming building works can turn a seemingly good apartment purchase into an expensive exercise. The Owners Corporations Act requires proper disclosure, but you still need to read it carefully.

6. Not checking zoning, overlays or past building work
Heritage overlays, bushfire designations, flood zones and undisclosed building alterations can all restrict what you can do with a property. Council records and planning maps tell you the real story.

7. Assuming rent always rises
Rents do not always trend up. Oversupply, dated stock or poor transport options can cause rent to fall. Do not rely on future rent increases to make the numbers work.

8. Forgetting about daily convenience for tenants
Tenants choose lifestyle first. Good transport, shops, medical services and schools all help maintain rent and long term value. Properties without these can lag behind.

9. Skipping the building and pest inspections
This is still one of the most painful and expensive mistakes. Termites, structural defects, moisture issues and failed drainage systems are easy to miss and expensive to fix. A proper inspection done in line with the Building Act avoids these surprises.

10. Not speaking to us before you start looking
A quick chat with Victorian Property Settlements at the beginning can save you hours of trouble. We help you understand what to watch for, what to avoid and which red flags matter most before you even step into the first open for inspection.

If you are thinking about buying an investment property, speak to us first and let us look over the documents before you commit. It is far easier and far cheaper to get clarity early than to fix a mistake after signing.