Buying properties for investment purposes is a good
way to make the most out of your hard-earned money and secure your
future and that of your family. However, it's important to remember that
investment properties do not offer a get-rich-quick scheme; rather, you
need considerable amounts of time, hard work and funding for your
investment to eventually pay off. For those who are new to investing in
properties, the prospect of earning large sums from your purchase may
sound really exciting, but it's important to keep calm and think of the
future in an objective manner. To help prospective investors, the head
of the Berkeley Capital Group, shares the four most common mistakes that
new investors must avoid:
Diving
into investments without a plan - Investing in real estate is more than
just buying a house, fixing it up and selling or renting it out in the
future. There are many factors that will help influence the success of
your investment, such as the state of the economy and future
developments for the area where your property is located. It's important
to think your plans through and prepare well to protect yourself from
failed investments - you have to take into account factors that will
affect your property and carefully assess whether it's worth the risk or
not.
Not doing enough research - Before entering into the
business of real estate-or any area of business, for that matter, it's
best to understand first the ins and outs of the system. Doing adequate
research also protects you from failed investments in the future because
it helps you determine whether the property you are buying is truly
profitable. More importantly, doing research on properties you are
interested in will help you avoid paying more than what the property is
really worth.
Not getting assistance from experts - People who are
new to investing often think that they can do things themselves.
Adequate research does equip you with the basic information needed to
make a successful investment; however, there are certain tasks where you
will still need professional assistance, such as during property
appraisals or inspections for damage. If renovation is also part of your
investment plans, experts can still help make the process easier for
you. As a new investor, it's important to acknowledge your own
weaknesses and learn to know when it's time to call in for help.
Underestimating
costs - Taxes and renovation costs can take a significant amount out of
your future earnings, so it's very important to be realistic about
them. Don't buy a dilapidated house thinking that you'll only need a few
cans of paint to make it ready for the market. If you can't assess how
much you will be spending on taxes and renovation, consult an expert and get an estimate for these expenses.
Based on the article by Georgia K San
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