Only being interested when the market is hot
A lot of people decide to become property investors when house prices are rising.
In reality, you should have been buying three or four years ago. When it is doom and gloom, that is when you should be buying.
Buying in the wrong location
Investors should look for places where there was population growth, infrastructure and employment.
You've got to invest in those locations for growth. It helps people get the next deposit and keeps cashflow robust.
Not getting advice
Property investors should have an accountant with experience in property investment, a property mentor or a financial adviser to talk to. Local property investors associations can be helpful also.
It's important to have a plan and review it regularly
Talk to a lawyer and accountant to get the right ownership structure in place.
Trusts are great for asset protection but bad for tax efficiency. If the property is making losses, you could get stuck there.
Thinking finance is just about getting a loan
Fix parts of your loans on different terms, such as some floating, some fixed for a year, two years and three years, so they would come up for renewal at staggered intervals.
It smooths out the interest expense and means you can avail yourself of opportunities when low interest rates are offered.
Olly Newland cautioned against borrowing too heavily on your own home. "You shouldn't borrow more than the rent from the property will cover."
Not doing the numbers
People don't know the difference between the gross yield of a property - a basic calculation of the rent coming in as a percentage of the purchase price - and the net yield - what they would earn after all the costs were taken into account.
Costs could easily make the difference between a purchase being a good opportunity or a long-term drain on finances. - David Whitburn, project manager at Fuzo Property
Not managing the property well
Investors should ensure they had enough money aside to cover repairs and maintenance, and keep on top of it. Many would end up not putting rents up often enough or not knowing how to deal with problem tenants.