COMMON INVESTING MISTAKES IN REAL ESTATE THAT YOU MUST AVOID
By: Sheeba George
Tags: Property Investment, Real Estate Agent, Real Estate Investments, Property, Real Estate

The real estate market in India was valued at USD 1.72 Billion in 2019. It is expected to reach USD 9.30 billion by 2040. Undoubtedly, real estates present the best investment opportunity, and you can expect a massive return from it. But all these will happen if you make smart choices and avoid classic mistakes. No one can become a real estate expert overnight. You need experience, knowledge, and skills for that, and most importantly, you need to avoid common investing mistakes. With a bit of prudence and due diligence, you can avoid these common mistakes and generate healthy returns.

Taking The Plunge Without An Investment Strategy

Most people would say, ‘what is stopping you?’ ‘take the leap of faith,’ but remember jumping into this without a plan can be catastrophic. Your investment should be based on a goal. It can vary with your age, income, or experience. But you must have a plan, an estimate of the future cash flows, and a proper budget. Know why you are investing in real estate and have a well-planned investment strategy.

Incomplete Or No Research

Without extensive research, your investment would eventually become a dead investment. You need to ask a lot of questions and find more information about the property or house that you are purchasing. Due diligence is critical in the case of real estate investments. Look around the property, enquire about the neighborhood, the amenities available, the land’s appreciation value, and connectivity. At the same time, research thoroughly about the builder or owner and figure out the exact reason why he is selling his property.

Not Estimating Your Finances

Your investment does not end with the purchase of the house or property. Most of the time, people overlook the costs involved in maintenance, painting, decorations, and other expenses. Additionally, you would have to pay property taxes, house insurance, and so on. Unless you plan your finances properly, you would always make the wrong decisions.

It Is Not An Individual Game

Real estate is a team game; the stronger and diverse your team is, the better is your chances of success. Amateurs think that they can handle everything on their own, a huge mistake. A real estate agent, investment coach, a good lawyer, and a property inspector is a must in your group. Utilize your network and connect with these people. Together they will help you in making the best decisions for yourself.

Investing In The Wrong Property

Just because prices are low, you should not invest in any property. Depending on your goal and strategy, you must decide on what kind of real estate do you want to spend. Do you want a commercial space or a residential property? If you have experts by your side, then they will guide you in the best possible manner. Do not forget to check out the past projects of the builder, the quality of construction processes, and the architecture of the building. Visit Pinnacle Quality Homes and Properties

Have Patience And Do Not Overbid

The process of identifying the right property can be long and frustrating. In the process, most buyers become anxious and tend to overbid in fear of losing their ideal home. But remember that this can have a waterfall effect, you may end up with considerable expenses, more than what you can afford. Before you finalize your bid, find out the right price for the property. Consult a broker or real estate agent and find the prices of similar properties in that area. There will be a lot of options and opportunities. We know it’s a long process, but keep your patience and make the best choice.

Investing in the real estate market is not a child’s play; at the same time, it is not rocket science. All you need to do is learn the basics, have a proper strategy, connect with experts, and make well-informed and well-researched decisions.