One of the significant advantages and aspects of investing in the real estate market is the possibility of realizing positive earnings in the long run when strategize properly. However, taking an investment venture into this realm is no easy task. Many investors take the risk and earned an appreciation in their money value but there are others who aggressively place their money on an investment but ends up not expecting any gain from their deal.
The latter scenario is a result of some common investor’s mistake that when properly addressed and tend to earlier may result to a positive gain on investment. Consider reading each of these first before venturing on your real estate investment.
As stated above, a real estate investment is no easy task. Hence, a deliberate and thorough research should be made prior to purchase. Research includes the property location, neighbourhood, developer, predicted future problems, reasonable price, among others. An important consideration to this is that the property to acquire is worth the price, satisfies your needs and would later on appreciate in value. If you’d focus only on one factor due to lack of analysis and investigation, you might fail to realize the need of others when you have already place your money on investment. By that time, it is already hard to withdraw your investment. In addition, educating yourself on the technicalities of real estate market would later on help you bounce back once you see yourself about to hit the bottom of your portfolio plan.
Lack of Strategic Preparation and Back-up Plan
It is important to note that prior to purchasing a real estate investment, you have already a list of consideration to follow through. A property though maybe considered an investment will never set its use when not aligned with your needs and requirements. Financial flexibility, on the other hand, plays a very significant on your investment portfolio. It is your ability to shift on one financial instrument to other when the current scenario tends you to do so. It is expecting the unexpected! After all, you are dealing with an unstable market. Hence, a back-up plan should also be in place in case what you originally plan out turned below your expectation.
The “I think I can do it alone” Attitude
Real estate investment covers numerous factors and more often deals with technical stuffs. It is therefore likely that you should make a rapport with individuals who have expertise in these areas. The capabilities of these experts will bring ease with your transaction and make you avoid unnecessary fault on your investment.
Another mistake that investors take to regard and incorporate in their expenses is the cost associated upon acquiring an investment. These are the cost necessary for maintenance and improvement. Having these perceive and incorporate in the initial plan of your investment will give you a better forecast on your ability to afford a real estate property.
Overpaying on Property
This setback can be tag along with the lack of research. An investor who simply put money on an investment that is not aligned with its necessity may just end up losing in the end. The higher the amount of money you invest in the real estate does not guarantee a gain because after all, you need to consider its suitability to your needs.
There are a lot of property developments to consider and one of them is ProFriends, one of the fastest growing property developers in the Philippines with aim to “give the best dream home packaged with unmatched convenience in strategic locations” and a commitment “to provide quality homes at friendly rates”.
We all have our experiences and failures when it comes to money matters. The best thing that we could gain from our failures is the avoidance of repetitive mistakes. Based on your experiences, do you have anything to add to this list that might seem to be helpful in planning future investments? Share it with us.
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