Just read an article in the Herald Sun where 4 finance experts from differing fields nominate their top five financial traps for property investors. They note 20 traps to avoid in all, and, while I don’t agree with all the points made most of them make sense.
Want I want to discuss is what they left out, not what they included. None of them mention the trap that possibly causes more financial stress to property investors than any other. That is not understanding the cash-flow before buying the property, and it is so easy to do especially when buying through a normal real estate agent as they sell property with no care or responsibility.
Make sure you have your accountant or someone independent look at the cash flow for you. If your accountant can’t do it then find one that can.