The fifteen most common mistakes made by amateur property investors:

1. Many amateur investors are unsure how to spot the signs of a property downturn and how to maximise their profits in a fallen market.

2. Most amateur investors are probably unaware of the main differences between property investment and property speculation.

3. Amateur investors do not fully understand the tax advantages of commercial finance over buy-to-let finance.

4. Many investors are unsure of the main advantages of interest only mortgage deals over capital interest mortgages. 

5. They do not take professional advice on the most tax efficient vehicle to acquire investment properties.

6. Buying property in the wrong areas where there is little tenant demand and insufficient market research has been carried out to justify a purchase.

7. Fail to get the right balance in their portfolios between good yielding properties and properties that offer good capital growth prospects.

8. Many investors pay over market value for properties and fail to realise that there is often much easier and quicker ways to acquire under-valued property through professional property sourcing companies like McEwan Fraser.

9. A big mistake is furnishing rented property like their own home. Normally furnishing a buy-to-let property is not a tax deductible expense. Investors should approach furniture companies that specialise in the buy-to-let market, such as McEwan Contract Furniture. (www.dialabed.co.uk)

10. Many investors fail to realise the benefit of having a network of experienced and trusted advisers to advise them on all property matters. Many investors often learn from their mistakes, which can sometimes prove costly.

11. They do not fully understand what they can legitimately offset against tax and consequently could have much higher profits.

12. Some investors are not aware on how best to reduce their capital gains tax liability when they come to sell their property. Even very simple and straight-forward measures could dramatically reduce this tax..

 

13. Most amateur investors stay clear of commercial property investments simply because they do not understand the many benefits that commercial property has to offer.

14. To become a really successful property investor, you must understand the unique power of gearing.

15. Many amateur investors are not trained on effective tenancy management and are unaware of excellent techniques to ensure that tenants almost always pay their rent on time.

If you do not know the answers to some of these common mistakes, then we would suggest you could benefit from the services of McEwan Fraser.

Office Tel. No. 0131 523 1540
Email: info@mcewanfraser.co.uk