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This article looks at the five major mistakes that owners and investors are making that are causing them to suffer financial or mental distress because the expectation they have about their property may not match the reality of the market environment. Mistake No 1 – Over-Capitalising. This is the number one error that we are seeing time and time again. Typically, it’s in the form of renovations to an existing dwelling and generally comes in two forms. The first is simply spending far too much money on improving the property and The real estate environment as we see it today is very different to that of early 2000-2004 when even Mum and Dad investors could make a profit from a property transaction. During that time, simply buying a property was enough to guarantee some form of capital growth. From 2004 through to 2008, the market consolidated and the rate of growth declined but investors (and home owners) could still attain reasonable growth if they chose well and bought right. Since

Since Oct,2009 Reserve has increased 6 times its rate bringing the cash rate to 4.25%, the average variable rate borrower liked you and me are obtaining in the range of 6.71% to 6.81%, this inevitably puts enormous financial pressure for many people who has a mortgage over them. Australia rate movement is bold due to various factors such as: GFC is not totally over, Greece crisis is still lingering in the air causing global stock market to tumble in recent weeks. Beside, Australia is a country that is heavily dependent on exporting our resources to other countries and our local market is not big enough liked China to consume our own produced goods and services. Then why is Australia is the only developing country that keeps increasing its rate? Many investors are unable to predict the rate movement liked an economist, but interest rate is directly affecting one’s return of investment, hence it becomes a sensitive area that any astute investors cannot afford to ignore. It's the &quo