Few Common Mistakes in Real Estate Investment
In this article, we try to explore some of the common mistakes that investors generally do while investing the money in real estate. The most common mistake is investing without doing proper research about property or locality. Although there are number of factors to consider like planning about property, funds, maintenance of property etc. Real Estate investment is not a gambling where anyone gets rich in a short period of time. It needs proper research & planning, foreseeing the future of investment, calculation, funds, estimation etc.
Canada is one of the most attractive places for the investment in real estate. Ever since the gates were opened to foreign investors, the real estate investment in Canada has almost touched the pinnacle. New homes are being built in every location; sellers tempt you by offering incentives or attractive offers on buying the property. Following are some of the common mistakes that investors make while investing:
Lack of Planning before investment
Lack of proper planning is the biggest mistake that most of the investors make in real estate investment. They buy a property that seems a good deal but after then they try to find out what next. Property investment needs planning first, and then takes the next step to buy a property that meets your criteria.
Lack of trust in realtors
This is very common mistake that people often make. Firstly, find a good real estate agent who can help you to locate your desirable properties. Then trust him, his suggestions because he can provide you very good suggestions or ideas that what action you should take to avoid any legal conflicts later on. Also trusting a realtor will be better for the smooth dealing.
Old and Fixed set of ideas
Don’t follow your fixed set of ideas for buying or selling any property. Just wait for the right property to buy that sets on your criteria. It’s better to wait for a month or more than buying a wrong property.
Location plays an important role if you are buying any property by considering the future for selling that property or rent out ideas. If your property is nearby to the shopping malls, public transportation, hospital, market, schools or other amenities, then it will attract the renters and potential buyers.
It’s good to discuss with your financial advisor and your bank for loan amount before finalizing the property to purchase. You should also count the mortgage if you are rent out any property. You should have a proper look on your finances before making any decision on property. You can also do a thorough study of market trends to get the idea of the growth rate of your property.
Paying more than it’s worth
This mistake is commonly done by most of the new investors. They do not do proper research on finding the exact value of property and pay the more amounts then its worth, and repent later on.
So make a strong strategy and follow accordingly to buy, hold and sell or rent out the properties. You also pay attention on the cash used for the maintenance of your property. In the nutshell, your plans should cover all the necessary factors to reach the right decision.
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