Undoubtedly real estate is one of the most recommended and safest investments that anyone can consider. Yes, it’s true that you can make money buying and selling properties. But don’t expect to become an expert overnight. However, it takes knowledge, determination, and skill. It also helps to know some of the classic mistakes that others make when they start investing in property to help you avoid making them too. Here is a look at eight of these pitfalls.
Skimping on proper research
This is one of the most overlooked aspects of property investment. Prior to investment, you must first analyze the market conditions and conduct thorough research of the prevailing property rates in the desired location. Without proper knowledge and understanding of the market, chances are more that you may get deceived by brokers or fraudulent agents. Once you shortlist a few properties, you must check aspects like location benefits, land value, rental demand, road connectivity, nearby facilities, builder’s history, etc. Various aspects like lack of water supply, air pollution, poor transport facilities, and civic amenities can affect your investment if they go unnoticed.
Not evaluating your finances and credit score
Nothing is as important as evaluating your finances when entering a new investment deal. Apart from the major expenses like the cost of the property, taxes, and registration fees, there are many other hidden costs involved in property investment. If you are buying a house you have to consider maintenance costs, cost of furnishing and interiors, cost of repairs if any, utility charges, etc. Prepare a detailed document of the expenses and check whether you can afford them. If you are planning to take a home loan, then you must consult with a bank to know your eligibility. Having a good credit score will help you get a loan at lower interest rates and longer repayment tenure. A credit score of 700 or above is considered to be good and increases your credibility to get a loan.
Not choosing the right property
There are several real estate options for us to invest in – from houses and villas to commercial and industrial spaces. To maximize returns, make sure you do decide between residential and commercial real estate as a better investment option. It is also important you check out the amenities and facilities offered by the developers as they play a huge role in your day-to-day life. Look for state-of-the-art architecture and world-class quality of construction, making it the best investment option for NRI investors and resident home buyers
Not checking the builder’s reputation
When it comes to investing in real estate, it is always advisable to opt for a reputed property developer. A renowned real estate brand will procure all relevant legal permits and documents required for property sale. They also ensure that their projects are approved by RERA to ensure transparency in all transactions. Moreover, a well-experienced developer will always go that extra mile to satisfy their customers. If you are buying a home or an apartment from a reputed brand, you can be assured of good quality construction and excellent customer service. You can visit the company website, social media pages and project sites to get a complete picture of the developer. Alternatively, you can also seek feedback from previous customers or buyers to check the builder’s reputation.
Not seeking expert advice
Most investors don’t consider seeking professional help for real estate investments. They think that they can be successful investors even if they don’t talk to any industry experts. But this may put them in trouble later on for there can be many unknown issues associated with properties. Interacting with a reliable property advisor will not only save you from fraudulent offers but will also ensure that your property is free of legal issues. An experienced real estate agent can find you a good property at a fair price deal. Also, it is always ideal to consult a financial advisor to plan your expenses and prepare yourself for the investment.
The Bottom Line
The reality is that if investing in real estate was easy, everybody would be doing it. Fortunately, many of the struggles investors endure can be avoided with due diligence and proper planning before a contract is signed. Whether you’re a first-time homebuyer or seasoned investor, revisiting the basics and understanding these common mistakes can help you save time and money. Once you’re prepared, head out to Swati Realty today and find your dream home.
Explore the opportunities and be a smart investor!!