Real estate market has never been a fool’s sport. When in the real estate market, buying something which you do not know about can prove disastrous. Simply investing money in real estate and expecting it to do wonders would be rather foolish. As an investor, it is significant to evaluate all the property documents before you invest your hard-earned money. Buying a condo is one such costly investment.
Thorough planning, preparation and knowledge can help you to get positive cash flows. Here are some mistakes that investors make which may prove expensive to them –
* Being fooled by developers – Since developers invest lot of money on promotion and launch of their property, it is extremely important to understand the strategy of the developer. Many investors get caught in the developer’s nexus. They adopt several tricks by offering discounts to family and friends with each purchase. Stay away from such boasters.
* Not considering tax implications – Before you make any investment in the realty market, it is important to understand the tax implications that will be laid on buying, selling and renting. Before buying any luxury house, hire a real estate specialized accountant that will help you to understand the terms such as capital cost allowance or recapture.
* Ignoring market trends – Ignoring market trends that govern the realty market can prove devastating. Ignoring media, figures, real estate news are some of the amateur attempts, for which you may have to pay heavily in future.
* Slow sales – Have you ever wondered why a developer offers extra commission or bonus to the real estate agent? These are some of the symptoms of slow sales. They do everything to attract buyers.
* Poor location – Condominium investments depends on the locality and the region that surrounds them. It is the location that makes the condominium good to buy. Good location does not mean the right locality; it just means that it has strong base for resale as well.
* Overpaying – Sometimes the condo investors do not make efforts to do research by themselves. They fail to hire a reliable agent, which results in negative cash flow.
Investing in real estate is not as easy as it seems. The hot markets tend to attract the potential buyers, but the reality lies in the vicinity of the market. Jumping hastily to conclusions without understanding the benefits and losses can be very dangerous. One needs to be well informed with the changing trends of the market. One cannot leave everything to luck, self approach is necessary to reap fruitful results.
By Daniel Rray