Real Estate Investment undoubtedly attracts people. Individuals expects to double their hard-earned money. In addition, people put their money into Real Estate Investment mainly because of various reasons that rotate around speculation, for example, – the retirement plans, increased resources, the financial independence & many more.
Whatever the case is, we all somehow know that investment in Real Estate is not a piece of cake. Furthermore, it is not as simple as it seems. Here, we have gathered few things that would lead you to regret your decision in investment.
Fail to research properly
Whenever you going to buy any product either be it Plot, House, Commercial Space, Farmhouse or any other property, you do some research of your own. What most likely people tend to do is:
Compare & analyze models
- Pose questions
- Inquire about it
- Choose the best option
- Buy the product
Same is the case before investing in any real estate project. Any investor must do the research. He or she should ask question regarding location, development, NOC, facilities etc. Also, do visit the development site yourself as well. In addition, do not forget to consider & compare other options.
Not knowing complexities
You should have a solid grip on the entire procedure of purchasing & selling the complexities involved in Real Estate investment. It will assist you with settling on the right speculation choice. Furthermore, chances of being dodged are also reduced because you have put in the time & our familiar with property you are buying in detail.
No Budget Planning
This is one of the common mistakes that beginners usually do majorly due to lack of experience. Impractical budget estimation can be related to anything. For example, usually investors overlook the cost spend on:
- Property transfer fee
- Agents commission
- Stamp duty
There are several other legalities that require huge amounts. Furthermore, there are tons of other additional costs & matters including repairs, tax, bills, paints & various maintenance expenditures that you need to keep into account. Thus due to these unplanned expenses things can get really hard for novice investors.
Also Read: What is Exit Strategy?
Investing all you have
This is one the major mistakes that makes investor regret their decisions. Putting all your saving & asset in an investment is a big blunder. Experts believe that investors should never invest all of their savings in one single venture. They should have a diverse portfolio & have a backup for any unpredictable situations. Saving some for rainy days is crucial in real estate investment.