Posted on 22nd August 2018 Author: Planet Homes
Investing in a property is said to be one of the safest investments of all. The main reason for this is benefits of good return on investment & perennial boom of the real estate sector. There are plenty of guides available in order to achieve success on the real estate investment. Yet there are minor mistakes that most people do while making a property investment, which turn out to be a costly affair for most of them.
Letting your heart rule over your head
Most people treat property buying as an emotional investment. 90% of the property investment decisions are made from the heart & only 10% using head. It is justified to feel so if you are going to raise your family in the property that you are buying. But if you are planning to purchase a property for investment, you shouldn’t let your heart rule over your head and act according to prevailing the market conditions.
Choosing a wrong place
Location is the most important factor to consider while making any real estate investment. There are few locations of regions where real estate booms rapidly, but then there are few markets that take many years in order to grow or give good returns on investment. Doing proper research and analysis of the market potentiality for growth, can help the investor take the right decision.
Acting impulsive or too cautious
There are two persistent traits of the investor that lead to wrong decisions making. Those who take impulsive decisions and those who behave too cautiously. Impulsive investors do not invest time in doing their homework well and jump on to the first investment that looks appealing to them. This can turn into a bad decision real quick as there could be better deals available in the market. Whereas cautious buyers invest too much time in thinking and loose on the good opportunities. They attend every seminal, go through all the websites and by the time they actually decide to make a purchase, the property ends up being sold out. A good decision maker is the one who balances both these traits to churn out an effective deal out of the property.
Lack of research
Research is very important while making any big purchase, especially when you are investing in a property to achieve high return on investment. Lack of research with regards to the appropriate value of the place, legal formalities, paperwork etc. can lead to a bad investment decision. Taking help of a good investment guide & analysing the market can save you from investing in a wrong property.