Real Estate

Stop making these 5 Common Mistakes in Real Estate Investment!

July 27, 2023

Real Estate is perhaps the only investment, which is guaranteed to appreciate over time. It provides immediate financial assistance, in the form of rent or lease. This makes it attractive to people from all backgrounds who are looking to invest. If you are a newbie to the real estate investment world, don’t expect to become an expert overnight. It’s important to start with a proper strategy so that you can align your investment choices with your long-term goals. Here are some common mistakes made by both new and seasoned real estate investors, which you can avoid, to ensure your investment pays off.

  1. Failing to Research

Before you buy a car or new furniture for your house, you compare different models and brands, ask a lot of questions, and try to determine whether it is worth the money. While purchasing real estate, one should be more cautious and research thoroughly.

Doing research before purchasing a property is the key to obtaining a good deal. One must analyse the market conditions and understand the prevailing property rates in the desired location to prevent getting deceived by fraudulent property brokers.  Check aspects like rental demand, road connectivity, transport facilities, location benefits, and civic amenities available, before making a decision.

Knowledge is Power. Enquire about the property in its neighbourhood including previous ownership. Is the property located in a flood zone? What is the reason behind the property being sold? This due diligence will help you make the right choice and prevent you from making a bad investment.

 

  1. Not estimating your financial capabilities

The main purpose of property investment is to make profits. But there are instances when people enter into a new investment deal without evaluating their finances. This can cause a dent in your pocket. Apart from the major expenses, like the cost of the property, registration fees, and taxes, there are many other hidden costs involved in real estate investment. One should keep in mind commissions, renovation costs, and property maintenance costs. At Marian Projects, we recommend you prepare a detailed document of your expenses and check whether you can afford it. Consult a bank to know your eligibility for a home loan. Having a good CIBIL score will help you get a loan at a lower rate of interest.

 

  1. Choosing the wrong real estate agent/developer

Choosing the right real estate agent or a reputed and trusted real estate developer is essential in making gains from your property investment. Ensure that your real estate project is approved by RERA, to ensure transparency in all transactions. Pick a real estate agent and developer who has the experience and a track record of success. A real estate agent can guide you in making the right decision about purchasing a property and can prevent from you committing a serious mistake. If you are buying your dream home or an apartment from a reputed builder, you are assured of good quality construction. You can visit the website, and social media pages of the developer to know more about their projects. You can also check out testimonials from previous customers to check out the builder’s credibility. At Land Trades, we go the extra mile to satisfy our customers. We procure all relevant legal permits and documents required for property sale.

 

  1. Choosing the wrong property

Before diving into real estate investment, one should decide on the type of property, they want to invest in such as residential, mixed-use or commercial space. Figure out your purchase plan, then look for properties that fit that plan. Select properties in prime location as they are always in great demand. Check out available amenities and nearby civic facilities. Such properties always provide good resale value. Depending on your financial capabilities and requirements, shortlist a couple of properties and seek the help of a property advisor to make a wise decision. If you choose a wrong property, you will be putting your money at risk. You may land yourself into a dead investment.

 

  1. Trusting your own gut and not seeking expert advice

This is one of the biggest mistakes made by most real estate buyers. Property buyers generally think they can close a real estate transaction on their own. This may cause problems later on, for there can be many issues associated with the property which can appear down the line. Assembling a team of professionals, such as an experienced real estate agent, a lawyer, a reliable financial advisor, and a real estate investment coach can help you make the right purchase. A real estate agent will help you get a good property at a fair price. A lawyer will be able to warn you of any defects in the title and ensure that your property is free of legal issues. Consult a financial advisor to plan your expenses. Find a reliable property advisor who can save you from fraudulent offers.

In conclusion, real estate investing requires years of research and practical experience for you to become a master. Being informed about these mistakes will help you to make the right choices, invest smartly in property and avoid financial loss. It’s your turn to explore the opportunities around you and be a smart real estate investor. If you are looking for RERA approved properties in Mangalore, contact Marian Projects Pvt Ltd, on +91-9686687604.

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