How To Stay Away From Bad Investment Properties

As the stock market continues to undermine the confidence of investors across Australia, many are turning increasingly to the real estate market in order to put their money in a safer place. More and more people are looking into Brisbane conveyancing, Gold Coast conveyancing and many other opportunities around the country as a means of earning extra money in a less stressful way. Although this can be a lucrative proposition, it is important to know that bad investment properties do exist; below, we highlight a few ways that you can avoid them.

Watch Out For Flood Plains

All too often, excellent deals can materialise for property that looks amazing; the low asking price lures you in, and you only discover once the deal is sealed that it sits on a flood plain. As time progresses, you will be subject to the high cost of repairing flood damage to your investment property. In fact, any money you stood to make on it will likely go into repairing it. Avoid properties near swampland or on an area that borders a river, pond or other questionable body of water.

Have A Thorough Inspection Conducted

Although you are sure to have your investment property appraised and looked over by a professional, you may not realise how important it is to have it checked out for pests as well. Nothing can put a damper on a seemingly lucrative investment opportunity like the presence of termites or other destructive, annoying pests. Before the deal goes through, have a reputable pest control company come out and closely examine the premises; otherwise, you may end up with an investment in pest control supplies rather than real estate.

Watch Out For "Rising Damp"

One of the most insidious potential problems that can occur in an investment property is known as "rising damp"; this is where the ground water that the house sits on rises up into the structure vertically. It compromises the structural integrity of the building and can lead to major repair bills down the road. Often, rising damp can be identified by simply trying to apply coats of paint to a home's walls. If rising damp is present, the paint won't seem to want to "stick." Plaster walls will feel spongy and will flake easily. Closely check out each room and avoid investment properties that exhibit signs of rising damp, or you will end up with much more than you bargained for.