I get asked about buying mistakes a lot. So much I wrote a blog post about them. I thought a thread about the most interesting ones might flush out some useful info... Here in the post are a selection from my list of most common buyer mistakes, to read the rest of my 21 most common that I see people making are in the blog post entitled "DREAM OR NIGHTMARE? 21 MOST COMMON PROPERTY BUYER MISTAKES THAT CAN DERAIL YOUR FINANCIAL GOALS (AND HOW TO AVOID THEM)": 1 Not having a plan – buying aimlessly is counter productive and owning the wrong property is a dead weight to your financial future. Real estate is lumpy, it is hard to buy and sell so it only makes sense to think twice before choosing what to purchase. Set long term goals, THEN short term goals & stick to them. 3 Being led by the media – In my 16 years of property investing I have seen articles saying that the market will crash by 50% and now is the wrong time to buy property EVERY SINGLE YEAR. This makes for great newspaper articles but most journalists know very little about real estate. Of course we need to understand the market and be smart but there are always opportunities to buy and most people would be better off if they purchase when they can rather than giving in to the fear based media. 5 Analysis Paralysis – research is important but at Precium we have seen many people send literally years searching for the right property only to miss an entire boom phase. This costs hundreds of thousands of dollars in lost opportunity. Don’t let fear (see point 3) drive your decisions. Picking a few key things to measure in line with your goals and moving forward each week using baby steps will create momentum and help you avoid getting stuck. 9 Not getting the right loan – paying too much interest or being stuck with a dodgy loan can impact property investors who want to build a portfolio. Getting good advice should help. 14 Not modelling the profit accurately if renovating or developing – this one is for the more advanced investors or those doing property development. Not fully understanding all the costs of renovating for profit or developing multiple units on a block of land can ruin you faster than a drunk week at a casino. Feasibility studies are essential to know what profit to expect before you make a single offer on a property. 15 Not negotiating well – we love negotiation! It is (in our opinion) the highest per hour work most people do in their lifetime. If in 3 phone calls I can change the purchase price of a property by $60k, then I have just made $20k per phone call. The trick is knowing what to say, when to say it and handling the pressure in between. It is a learned skill and a very profitable one, so learn it or get help from an expert! 19 Not keeping good records – your accountant will ask you for all the relevant records at tax time. The better your system for keeping those records the easier your tax returns will be. Set up a central filing system or computer folder to store it all, you will thank me later. What do you think? What are your most embarrassing ones? What about "friends" mistakes?