Investing Into Real Estate: Avoid Common Pitfalls

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Generally, real estate is considered a solid investment when done right. With property prices generally on the rise, buying into an up-and-coming area can secure your future position in real estate. Whether you are a professional real estate investor or just someone looking to diversify their investments, there are many common pitfalls that people still fall victim to. Learn more about how to avoid these pitfalls and dire consequences.

Not Crunching the Numbers

With buying any property but especially as a real estate investment, crunch each and every number before placing your bid to get an accurate figure on your ROI. If you manage a portfolio of properties, make sure your get sound advice from trusted professionals. Real estate industry lawyers, like those from Goodwin, will have expert knowledge of all matters related to tax, financing, joint ventures and much more. These experts can provide deep market insights that other professionals simply cannot.

Getting Emotionally Attached

Yes, some houses are gorgeous and might be your dream property, but remember that you are not necessarily buying to actually live there. More often than not, you are likely buying a second or even third property to rent out. So it doesn’t really matter that the house has period features and a large garden. From an investment point of view, all these selling points are moot. You will not be living in this property. Large gardens and period homes can often mean higher upkeep costs. You might also be tempted to over-invest into a property for improvement, thereby reducing your initial investment even more.

Buying the First Property You See & Buying Blind


Although

that first property might actually turn out to be the property for you, shop around before making a final decision. If you are buying a flat or house through an auction, make sure to have scheduled a viewing before bidding. Although the pictures might look nice, you will never know what could be lurking behind those strategically-shot images. Although buying blind might work out to your advantage, it is generally not recommended – you might get a few very nasty surprises this way.

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