5 Common Mistakes Made By Real Estate InvestorsDecember 19, 2017
Finding a successful investment in real estate is a daunting task with all the research and contemplation involved. To garner healthy returns in a property investment, factors like future potential, maximum capital appreciation, etc. should be given great consideration to avoid mistakes and to minimise risks.
Here are 5 common mistakes made by property investors.
1. In search of the right time
Many recommend to wait until the right time to invest in a property so as to receive maximum benefits. But there is no need to wait as a property is a need based product.
2. Lack of documented strategy
Not having a defined goal or strategy to analyse the cash flow projections and budget before investing will lead the deal to be a failure. Property purchase decision should be based on the requirement, expected future benefits, income, risk profile and experience.
3. Avoiding cheap purchase
Many tend to avoid purchasing properties which seem to be economical in the market deciding that a cheap price tag comes with an unworthy label. However, the purchase decision should be made considering the property as an asset and the investor should remember that making a right investment in right location is important.
4. Selling off early
Liquidating the real estate investment without waiting for the opportune time is another mistake. The investor should be in the lookout for price escalation and market changes before selling to ensure decent return of investments.
5. Lack of professional help
Consulting an amateur for all the processes and transactions in property purchase will lead to a poor investment deal which affects the future appreciation of the property. An expert who is well-versed about the real estate market and also has a good knowledge about the related documentation should be employed to make the investment worthwhile.
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