Investing in property is a big decision and undoubtedly, the one which involves a lot of risk owing to the fact that colossal amount of money is involved. One cannot simply invest in property without making prior inquiries and checks.
Buying property is an uphill battle which needs a great deal of preparation to avoid the pitfalls involved in the process. To help the new buyers, this post presents seven common pitfalls which you must avoid before making any investments in the property.
Lack of Research
This is one of the most common mistakes people make while making investments in the property. Though buying property is not a very difficult task, but checking certain vital aspects are very much essential to ensure that you do not lose your hard earned money. Make relevant research about the realtor from whom you are buying the property, including their previous track record, etc. Also, if there are other people who are also investing in similar properties, you can discuss with them.
Getting Financed From Wrong Firms
Most of the time when we get an attractive deal and lack in the finance required securing it; we start hunting for the financial firms. It is the time when some people may fall prey to lousy finance companies which present attractive deals but may have hidden conditions which they introduce you after processing your loans.
Trying to Do Everything On Your Own
Many buyers believe that they know it all and thus, do not bother about taking opinions and help from experts or experienced investors. This might make them end up in a situation where they may miss a profitable deal and get struck in a loss-oriented one.
It is always recommended to tap every possible resource and consult the experts before taking the purchase decisions. There are different types of experts who offer the right advice pertaining to different aspects of real estate purchase, so it’s always better to consult the right expert in the areas where you lack the right or apt knowledge.
Most of the first time buyers get very excited when they get a good deal and thus, pay the amount whatever is asked by the realtor while not bothering about any further negotiations or bargaining, though bargaining sounds a bit irrelevant while investing in properties, but, if you try, you may tap some benefits while making your real estate purchase.
Do not overextend yourself in the debt, but try to talk to the realtor confidently to extract as much discount, benefits or perks as possible.
Buying Property in Wrong Locality
Before you proceed any further, you need to be certain why you are buying the property. If you are buying a house for the purpose of living, you need to make sure that it is located in a well-developed part of Bangalore, and is close to all essential amenities. Properties which that are bought explicitly for sale or any other purpose can be further away from the main city area, and in a location that does not offer every necessary amenity, but will, once the area gets fully developed in a few years.
Miscalculating the Expenses
Purchasing property is a big decision and it is not as simple as it appears. You just not pay for the property, but there are a number of other expenses which are associated with the property purchase. For instance, there are various types of taxes. Registration costs and costs required for final finishing’s of the property. Thus, consider all these vital points before investing in the property.
Considering Property As an Asset with Quick Returns
Though real estate property is known as one of the best things to invest in, but the returns are not very quick. Sometimes, one has to wait for years to get highly profitable returns. Thus, do not consider it property as an asset that will make you rich instantaneously.
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