Tuesday, July 5, 2011

How to Make a Loss on Residential Property

See Yardney's list of ways to lose money on property.

I agree with his list. Avoid off-the-plan apartment purchases! Rarely will you make money in today's marketplace purchasing off the plan in Brisbane.

Also, property is a long term investment. If you do not have the capacity to buy and hold for at least 5 years, then avoid property investments. Not only will the capital gains be slight over the next few years, but the transactional costs (stamp duty, selling agent's fees, legal fees, bank fees) will wipe out any short term capital gain.

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