PIPA’s five steps to spring purchasing success

PIPA’s five steps to spring purchasing success
PIPA’s five steps to spring purchasing success

Spring buyers are coming out in force, and competition is still high in many markets this busy season.

The Property Investment Professionals of Australia (PIPA) has created a spring purchasing checklist for home buyers and investors, to encourage thoughtful buying decisions.

PIPA’s Ben Kingsley warns that while well-selected real estate is an opportunity for wealth creation, all transactions should be approached with due diligence.

“Not only should investors ensure any purchase fits in with their long term investment goals, but it’s important to be aware of unscrupulous operators, out to make a buck at the expense of innocent consumers,” he said.

Here’s their five-step spring purchasing checklist:

  1. Be aware of dodgy operators
    Steer clear of experts who don’t disclose how they earn their income.
    Be wary of those encouraging you towards a “one size fits all” approach, without considering your unique circumstances.
    Pushes to ‘act fast’ should have your alarm bells ringing.

  2. Do your research
    You must educate yourself as best possible.
    Consider the big picture investment strategies, as well as local property knowledge.

  3. Differentiate between education and sales pitch
    Improving your skills and knowledge about investing and managing property will help you avoid the unscrupulous operators.
    Educational seminars can be good, but be wary of the “sales pitch”.
    Consider reading materials, video presentations and similar that offer real education.

  4. Think long-term, not short-term
    Property investment is, generally speaking, a long-term investment.
    You should be thinking about buying and holding with a “bigger picture” in mind.
    Many investors follow emotions primarily, rather than their mind, and can encounter problems as a result.
    Consider each purchase a ‘stepping stone’, and ask how it will add to your overall goal.

  5. Seek professional advice
    Qualified advisers to work with you to develop long-term plans can be invaluable.
    Look for those willing to help you identify the right strategy fitting with your own wealth creation goals and aspirations.

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Jennifer Duke

Jennifer Duke

Jennifer Duke is an economics correspondent for The Sydney Morning Herald and The Age, based at Parliament House in Canberra.

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