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Buying properties is not exactly in the same league as buying clothes or mobile phones. Buying properties is a huge decision, and you need to consider both financial and legal factors that will make your purchase a success, or at least make the entire transaction as smooth as possible. It doesn’t matter if you’re buying a 3-bedroom house in a local suburb in NSW or a commercial office space in a quaint spot downtown. Buying properties should be done perfectly.

Sadly, this is not the case, as many people end up committing these 4 costly mistakes property buyers make.

There’s a tried and tested strategy for making money in the real estate industry. You buy property, you renovate it, and then you sell it at a higher price. But is this really something of a success story given by real estate agents who made it big, or is it no more than a myth?

Of course, when an agent tells you that he bought a property for $300,000, renovated it, and sold it for $450,000 12 months later, you’re more inclined to believe it and think that renovation is something that can be done to improve the value of your home.

There are some factors, or rather circumstances, that can make or break any property investment that follow the aforementioned model (buy, renovate, sell).

How far along have we gone when it comes to building houses? I can still remember my grandmother’s house in the suburbs almost 2 decades ago where her bathroom was located outside her house. It was a quaint little shed in the backyard. But things are different now. From a real estate agent’s POV, no one’s going to want to buy a house where the bathroom is located anywhere but inside the house. The housing elements that were considered a must-have 30 to 40 years ago are now considered old-fashioned or even counter-productive (especially when it comes to increasing your home’s value).

Imagine some of the features that made houses look trendy back in the 60’s and 70’s and imagine implementing these features into modern housing.  These features would instantaneously date your house to being built as far back as these housing trends were still popular, even though you just built your house this year.

Investing in property can be lucrative, especially when done right. But it’s not as easy as one might think. Some people do something along the lines of buying, renovating, and then selling the property. There are also those that buy property and have other people rent out the property. These properties range from a home in the suburb to a commercial space downtown.

When you think about buying an investment property, it should be about increasing your wealth and securing your financial future so you have to think long term here.