Real estate is one of the most acclaimed and secure investments for anyone to examine. Due to the ever-increasing demand for reliable housing in cities, you can be ensured of a great return on investment from real estate.
But, if you are new to the field of real estate and investing, it is essential to know the most common investment mistakes people make when thinking of buying a property like a flat or apartment in Kerala. Being aware of these errors can help you make the right decisions and avoid situations that could lead to business loss.
So let’s review 5 common real estate investment errors you should avoid.
1. Lack of proper research
This is one of the most neglected features of property investment. Before investing, you should primarily analyze the market situation and do careful research on the current property rates where required.
After shortlisting any properties, you should review location advantages, land value, rental conditions, road connectivity, nearby facilities, manufacturer’s past, and more. Different aspects such as reduction of water supply, air contamination, poor transport, and civic affairs can influence your decision and ROI if it goes unnoticed. Flats in Thrissur and Palakkad posses great location advantages with great geographical and cultural values.
2. Not calculating financial capacity
Nothing is as essential as evaluating your financial status when starting a new investment business. In addition to the major expenses, such as property values, taxes, and registration charges, there are other unknown costs associated with investing in a property. If you are purchasing a home you should think about the cost of repairs, the cost of furnishing and interior, the cost of repairs, and utility costs. Develop a detailed record of costs and see if you can manage them. If you are planning to take out a house loan, you should discuss it with a bank to arrange your eligibility. Having a good credit score will benefit you to get a loan with cheaper interest rates and higher repayment periods. A credit score of 700 or higher is deemed good and improves your credibility for getting a loan.
3. Not Checking the reputation of the Builder
Picking a reputable and trusted real estate developer guarantees the security of your investment. Obtain all legal permits and records required for the sale of a reputed real estate label property. Furthermore, experienced Builders will always go the extra mile to provide for their customers.
4. Not determining the right type of property
Once you have determined to invest in real estate, you need to decide what type of investments you are going to spend. Most first-time investors neglect this regard as they do not have much understanding of the real estate market. Picking the wrong asset can put your business at risk and close the investment. Think buying a property in prime locations, as they are always in high demand. Flats in Kochi and trivandrum are having high demand in the present real estate market.
5. Miss to inquire expert advice
Most investors do not think of inquiring expert advice for real estate investment. Although they have not articulated to any industry specialists, they believe they can be successful investors. But this can blend them later, as there may be several deep issues with the properties. Engaging with a trusted property advisor will not simply preserve you from fraudulent proposals, but will also guarantee that your property is free from legal problems. You can obtain a great property at a moderate price deal with an expert real estate agent.
Also Read: 5 Things you should consider before Selling a Property
We believe these statistics have given you a reliable knowledge of the basic mistakes in real estate investing and how to thoroughly invest in real estate. This is your opportunity to examine possibilities and become a great investor!