4 Common Property Investment Mistakes

It can be exciting and challenging to dive into the world of property investment. With potential for significant returns, it’s tempting to jump right in. However, it’s essential to know the pitfalls and be prepared.

Here’s a guide to assist you to prevent four frequent mistakes when buying your first investment property.

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1) Poor Cash Flow Management

Know the Initial Fees:

Before even inspecting properties, familiarise yourself with the initial costs related to buying. This includes stamp duty, legal fees, and inspection costs.

Expect Ongoing Expenses:

Owning a property isn’t just a one-time purchase. There are continuing costs like council rates, water bills, insurance, and potential repair costs. Putting aside a contingency fund may prevent you from financial pressure down the line.

Budgeting is Key:

A comprehensive budget will be very beneficial. It helps you identify possible financial challenges and tackle them proactively. If budgeting isn’t your strong suit, think about getting financial advice or using budgeting tools and apps.

2) Falling For Rental Guarantees

The Appeal of Guarantees:

It’s important to dig deeper into rental guarantees. Often, these guarantees are embedded in the purchase price, so you may be paying more than you want to.

Market Rate Comparison:

If the guaranteed rate is significantly higher than market rates, be cautious. When the guarantee period ends, you might not be able to find tenants at a comparable rate.

3) Risky Off-the-Plan Purchases

Potential Savings vs. Risks:

Purchasing off-the-plan might be more affordable than buying an existing property. However, it’s important to be informed of the associated risks.

A delay in construction can affect your financial plans, especially if you have to pay rent or another mortgage while you wait. Another potential issue with buying off the plan is securing financing. Before construction starts, some lenders may offer conditional approval (finance in principle) for off-the-plan purchases, but they will not provide financing until the property has been built and a valuation has been carried out.

Valuation Changes:

The property market can be unpredictable. By the time your new property is ready, its valuation may differ from your purchase price, affecting your loan-to-value ratio and potentially increasing your loan expenses.

4) Trying to Do It Alone

The process of buying a property can be daunting. From finding the right property to suit your investment goals to securing a loan that fits your requirements, the process can be challenging.

That’s where your 1st Street Mortgage Broker can help. You can rely on us to explain your borrowing capacity, create a purchasing budget, and provide professional advice regarding the right product and structure for your specific needs.

Ready to start?

If you’re ready to begin your property investment journey with confidence, reach out to your 1st Street Mortgage Broker. We’re here to guide and support you each step of the way.

Are you a first homebuyer looking for


We can help get you into your new home.

We’ve worked with clients across Australia to access the different first home owner grants (FHOG) as well as the various stamp duty and other concessions that may be available depending on which state you are in. We can talk you through your various options as well as helping you compare things like buying vacant land vs. an established home.

Enquire today!

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A word from our satisfied customers

Maxine Zhong
Maxine Zhong
19 October 2023
Amanda has been such an incredible support throughout our very first time going through the home loan process. Her thoughtfulness to regularly check in to make sure all our questions were answered and that all our documents were in place helped to make the whole daunting process feel seamless and easy. I could not recommend her enough - she made sure to keep us informed every step of the way and made sure all necessary documents/processes were completed well ahead of time so we never had to worry about missing any steps. She went well above and beyond her role, and I know we will definitely be coming back to her in the future, as well as recommending her to all of our networks! Thank you again, Amanda!
Mark Nesbitt
Mark Nesbitt
11 October 2023
Greg and the team provide an outstanding service. Highly recommended
Christine Tran
Christine Tran
23 September 2023
Yuval handled my first ever home loan, he did such an amazing job I asked to him to refinance for me 2 years later. Yuval made everything very easy for me, and will give his best recommendation as if it was his own. Would always recommend Yuval :)
David Petrini
David Petrini
25 August 2023
Yuval Bloomfield was an absolute delight to work with. He made it extremely easy for my clients to discuss about their financial situation. With Yuval's strong connections he was able to get the loan my clients wanted in very quick time. Will definitely refer Yuval again.
Sophie Linehan
Sophie Linehan
24 August 2023
Greg and the team at 1st Street were fantastic all the way through the process of getting our financing sorted and buying a new home. They not only secured us the most competitive mortgage in the market but they also gave advice on a number of mortgage-adjacent questions that came up along the way. Their responsive and thoughtful guidance helped make the nail-biting process clear and calm. We would definitely recommend their services.
Gabrielle Scott-Jones
Gabrielle Scott-Jones
18 August 2023
Greg and his team gave me exceptional advice and support. They were timely and detailed in their responses and dealt patiently with me as a first home buyer and all of my questions. The lender at the bank commented on how well I was being looked after compared with other brokers in the market. I’d highly recommend 1st Street to anyone, including friends and family.
Eli Simic
Eli Simic
15 August 2023
Great communication and fast service
Richard Kuipers
Richard Kuipers
11 August 2023
Jeremy and his team are superb. Negotiated the best deal for us and were an absolure pleasure to work with. Highly recommended, you can't do any better in my opinion.
Jordan Rivkin
Jordan Rivkin
1 August 2023
The team at 1st Street truly are professionals. I can't recommend Jeremy highly enough, he is extremely competent and just a great guy. You're in safe hands with 1st Street!
Yossi Bengida
Yossi Bengida
23 July 2023
Another amazing job by David and Bree. Always available for our questions, helpful and just 10/10 Seriously good work !! See you on the next one :) Yossi and liz