Investing in property takes time, patience and skill. Here is how to avoid some of the worst pitfalls.

Investing in property is a favoured way for many Australians to grow their wealth. While the rewards can be high, the risks are also considerable, especially for the ill-prepared. Here is a quick guide to avoiding the pitfalls.

Forearmed is forewarned

Knowledge is everything (or almost) when it comes to finding the right investment property. Almost every facet of purchasing a property, from the location to the price you'll pay, will be shaped by how well prepared you are. Before you buy, research trends to identify strong growth suburbs or regions. Spend time at open inspections to narrow your search to particular streets and types of houses. Monitor sales results so you know what to pay when the right property comes along.

Go where demand and growth is highest

While many investors are happy to sacrifice capital growth for higher rental return, most property experts advise concentrating on properties with strong capital growth potential. These tend to be in inner-city suburbs, near beaches and in popular lifestyle and retail hubs. Choose an area with consistently high rental demand, such as near a university or major employment area. Look for suburbs that will benefit from new transport and social infrastructure.

Don't play follow the leader

Remember the adage about buying low and selling high? Property markets run in cycles. And when property is hot, as in recent years, everyone wants a piece of the action. But as property author and founder of Destiny Financial Solutions Margaret Lomas writes, rather than joining the rush to buy in areas where prices are booming, it may be wiser to look elsewhere. She advises investors to instead focus on properties in areas that may be running behind the overall trend but still have strong underlying fundamentals and a strong economy.

Get independent advice

In recent years, hundreds of people have been stung in get rich quick property schemes. Luckily there are many independent professionals to turn to for help. They include buyers' agents, who will source property and negotiate with agents on your behalf, independent research firms, and valuers. Pest and building inspection firms can also help you avoid making a costly mistake. Finally, always get independent financial and legal advice before you purchase and ensure your lawyer reviews the contract.