The development of real estate investment or achieving early retirement can be said to be more and more “popular”. Successful examples in extensive publicity and reports in the media made many people think that buying a house will definitely help them achieve that goal. However, there are still many investors who have lost their money, or are “ordinary, no profit, no loss”. This is because they make some of the most common mistakes of investing in real estate.
Compared with the 70s and 80s, real estate investment today is faster and easier to earn profit but it also has to face stronger and greater risks. Real estate is no longer an ordinary investment or transaction, it is already a commodity, a globalized product, and an economic indicator. Therefore, young investors who are still in their father’s time often make serious mistakes, which may lead to loss of money.
Mistakes often happen to friends who buy a house for the first time. According to an online survey, more than 80% of investors said that they are unhappy with their first purchase and even regret it. So here are the 10 most common mistakes in property investment and see if it is the reason for your unsatisfactory investment. If so, the “advice” given next is enough to make your next investment smoothly and profitably!
Unwilling to accept systematic education, unable to distinguish between YES or NO
Generally, investors ignore the importance of education, they think that once they have read a book of investment warfare or unverified information on online investment forums, they can be qualified for investment work. Investment is a profession, and success or failure lies in the front line. Therefore, the first most important task is to obtain the correct knowledge and information to assist your judgment. If you accept the wrong message, it will directly affect your investment results.
Successful investors are willing to receive systematic investment education and seek advice from professionals in different fields so that they can make the most correct judgments in investment. Because the investment decision is very simple, that is, “buy” or “not to buy”, and behind this simple decision is a price, keep learning, learning, and learning, I can’t emphasize enough that reading books, newspaper, magazine and the Internet are all tools for you to seek answers and they are also part of the systematic education.
Real estate investment is a business
Everyone hopes to make their business grow bigger and bigger, if real estate investment is regarded as a business, the investment decision must be made through a corporate decision-making equation, and try to find the highest return. Business must be done step by step, and the same goes for investing in real estate, an industry with tens of thousands of dollars must be very particular, from purchase, negotiation, decoration, management to sale, it is a complicated procedure that requires careful management to obtain the highest profit.
Most people make this simple mistake, they want to buy a house but don’t take it seriously. They think that if you buy a house and leave it aside, it will naturally increase in value and bring you wealth. In fact, investing in real estate is the same as running a business, although it can earn you money, millions, it can also make a person go bankrupt. Remember, buying a house is a business, and it must be managed step by step, a real investor will decide from a business perspective when buying a property, which includes buying a house for himself to live in, and must also start with its potential for appreciation.
No personal credit score
Establishing a good credit score is one of the ways to help you start your route in property investment, many times we’ve heard from property investment professionals that you do not need to use your own money for investment and it doesn’t matter if you have or don’t have money, you need to invest to grow your profit.
Firstly, you’ll need to weigh out your debts and earnings, whatever you have left, you can start saving up for your next investment, have a good relationship with the bank, and keep your personal credit score record clean, then you’ll be able to get the best price and best loan % for your property purchase.
Getting the wrong opinion/advice from the wrong place
Another mistake that real estate investors should not make is to get the wrong opinions from the wrong place and make the wrong decision in purchasing a property. These investors like to ask their relatives, neighbors and those half-past six so-called “professionals” for advice. If you easily listen to the opinions of others, you may lose hundreds of thousands in a minute.
Remember, if you want to invest in real estate, you must understand where you can get the most accurate information, and more importantly, where you can deliver it at the fastest speed. In addition, participating in the real estate investor network and interacting frequently with friends in the circle is also one of the shortcuts to obtain the correct information.
Real estate investment networks generally have some professionals. These people are people who have deep research and insights into real estate. It will definitely be more beneficial to you to communicate and share with them. It can greatly reduce the risk of investment and this is one of the rules for successful investment.
Many display units of new projects will be beautifully decorated, causing the “new investors” of the industry to have a good impression of the property and make a decision to buy a property, but in fact the completed house is different from the display unit. This is of course the consequence of returning to the previous point I’ve stated in the beginning of the article, lack of experience and lack of knowledge.
Buying a house is not based on impressions, let alone feelings. That is a real business decision, seeking truth from facts, you need to know how much “real material” in the house you buy. In fact, most people make mistakes in emotional decision-making, such as choosing to be close to their mother-in-law’s home or an area familiar to them when buying a property for the first time, ignoring the appreciation of the industry. Some investors make decisions based on the impression of the salesperson of the house. This is unwise because the quality of the salesperson does not mean the profitability of the house.
As a savvy investor, you must know how to study the potential of the industry, and you must also determine the reliability of the information, and you must not let external factors affect your judgment of choosing an industry.
In the next article, it will highlight a few more pointers that will help more of you to understand the property market and avoid making unwise decisions! Stay tuned!