NEVER buy these 5 types of property

All property investors should NEVER buy these 5 property investments! If you're considering property investment in Australia, it is easy to fall for these common property investment mistakes.

Biggerockets podcast inspired my version of this video on property investment mistakes in Australia (the content is brand new). But I've gone into a lot more practical examples than Biggerpockets.

Firstly, restricted zoning property is a bad property investment because it limits the type of rental property tenants and re-sale. The limitations can include short-stay only real estate or Australian properties that are only for people over 55.

Then lending blacklisted property is a common property investment mistakes because banks won't lend to buyers who want to purchase the property investment off you. These lender restrictions can include apartment sizes, car bays, regional areas and powerlines.

Large apartment complexes that are older with lots of amenities can be a money pit for property investors. It's common to reduce strata costs by dropping the maintenance budget. This is a ticking time bomb for new property owners. Also, there is very little land value, so it's unlikely the complex's land value will ever outstrip its improvement value.

Biggerpockets does touch on this, but ALL property investors in Australia should AVOID middle-man introduced investment properties. They are paid to SELL you property investments and aren't looking out for the investors best interest.

Finally, overcapitalized is a common mistake in real estate. Always think of the worst house in the best area. Consider buying rental properties below or at a suburbs median house price unless you're paying a premium for land, to landbank.

Now you know the types of property you should NEVER buy and can avoid these property investment mistakes.

[bc]

Can you do a video of what type of properties you can actually buy for investment?

[philipmullins]

Buy the worst house in the best street not the best house in the worst street , be very careful with strata title body corporate fees, in a small block they can be zero or under $50 a week, in a large high rise, they could be a $100, $200 or even $300 or more a week, if the elevator needs replacement or the building starts to crumble, it could send some owners bankrupt with the high repair cost which you have no control over,

[biancax]

I love how he just kept going regardless of the noises loll

[sebastianw]

Love that this is in Perth- currently considering property investment here.

[djekna]

Still relevant today and will, pretty much, always be. Nice one!

[Moon_Productions]

Great information & insight Mate, hope you are well as I can see you don't upload much content anymore. Very much enjoying what you have shared 👍

[stevenoreilly]

Hey Kent, great how does one fine out which areas are blacklisted from a finance perspective

[thebeerhunter]

The best videos I've seen in ages.
Are you still doing them?

[rothscliff]

do not buy high density area (if you know what you are doing, go for it) the apartment in city area is so much overpriced and the value of apartments won't raise.

[terryhood]

You make a lot of sense. Actually what you say is common sense.

[richardmorice]

Great content so have liked the video, but think the videos would be better if you did most of the filming in quieter areas and only filmed in busy areas for short periods where a relevant point is being made

[lezan]

Quality content mate, keep it up. You seem sincere too, which is important in todays YT world

Out of curiosity, how do you find out which properties are lender restricted? Is there a list somewhere?

[humble_garden]

So informative! Thank you!!

What do you think about ex housing commissions?

Thanks

[tonycowan]

Great information Kent. How do find renovations projects?

[Errordemn]

Hey Kent, I was having a meeting with some investment property firm... From your description, I guess he is a middle man... They recommended building a new property in Alkimos. He did say he gets paid by the builder... We crunched some numbers and it all seemed good. Mind you, I'm new to this so some of the stuff I'm sure I'm not understanding. What are your thoughts?

Thanks!

[beauhalliday]

Hey mate can you make some videos about the home loan process.


Like 1st tier vs 2nd tier.

Are 2nd tier loans bad

If you have a default or bad work history is it wroth getting a 2nd tier loan .

[christopherdoerre]

Great content Kent. Keep up the great work.

I noticed you said pass on large strata apartment complexes with facilities eg. pools, gyms etc.
A pass also on large strata townhouse complexes for the same reason? Or because they have the land component and because they're going to be below the suburb median, they're viable? Interested as to whether for you they're in the NEVER buy category also.

[thepuppypads]

i actually used to ride my bike and play in that park in leeming

[magdalenakamecka]

hahaha needs a bit of editing on the interstate buy but valid points

[thuvan]

What do you think for commercial properties that can cause you have contaminated land? Such as a petrol stations?