Over 90 percent of the world’s millionaires say that investing in property is the best way to make money. But, of course, there is a lot more involved than buying the first property you come across. If you want to make a return on investment, you’ll need to learn the dos and don’ts of the market.
Today, we will focus on six property investment mistakes that newbies make when investing in property.
- Failing to Make a Residential Property Investment Strategy
To avoid any property investment mistakes, you should plan your investment strategy properly. The first thing you should do when coming up with the strategy is deciding what you’ll do with the property once you make the purchase. Here are some questions you should ask yourself:
- Which types of property will I get?
- What will be my purchase plan?
- What will I do with the property?
If you’re struggling with finding the answers, be sure to view this page for more help. You could also ask estate agents for their input. Professionals such as those at a Brookfield Real Estate Agency would be able to match you with properties that fit your criteria and purchase plan.
- Miscalculating Repair Costs
The second most common property investment mistake that most people make is buying a cheap, run-down property with the hopes of repairing it. The problem is when the repair costs are higher than the property’s value, which means that the return on investment will be minimal. Make sure to either calculate the repair cost accurately or hire an expert to help you.
- Choosing the Wrong Location
You’ve heard it before- “location, location, location”. That’s what brings value to a property.
Unfortunately, even the most beautiful property can lose value if it’s in a location that’s not appealing to potential buyers. So if you aren’t seeing any interest in your property because of the area, you may need a backup investment plan.
- Getting Attached to the Property
You should always remember the purpose of investing in property is to make a return on investment. Therefore, you need to arrange the house to please the eyes of buyers, not yours. The minute you start to feel an attachment, you need to review your property investment strategy.
- Not Hiring Help
Even though you want to get the most out of your investment, that doesn’t mean you want to skip out on hiring some professional advice. For example, a local real estate agent can help you sell your property a lot quicker since they know the local market. So, if you want a quicker return on investment, hire a real estate agent!
- Paying Too Much for the Property
The final property investment mistake people make is overpaying. That’s why it’s essential to research the local property market since it’ll help you understand what’s the real worth of a property. Knowing the market will also allow you to bargain with sellers, which may prove profitable if you can lower the initial price tag.
Avoid These Residential Property Investment Mistakes
Hopefully, with this list, you’ll avoid falling into the most common property investment mistakes. However, as already mentioned, don’t be afraid to ask for professional help, as it may prove helpful when investing in property.
Do you have any other property investment advice? If so, let us know in the comment section! And, if you enjoyed this post, be sure to check out our other real estate posts!
