Buying your own piece of property or even investing in the property market is a major deal. This is because a lot of money goes into this. It is therefore important to make sure that you avoid all the loopholes when you can. People make mistakes that cost them a lot in this sector. They buy houses for the wrong reasons or even fail to do research.
Buying a House for Its Decor
Remember that you are buying the house, not the things inside it, so make sure you see beyond the decorations and look at the bones of the home. Focus on the floor plan and the square footage. You also might want to measure the dimensions and graph out how that’s going to work with your belongings.
Not Providing Easy Access for Showings
Make your house easily accessible to potential buyers. If there’s nowhere to park or it’s difficult to get into, buyers may just skip it and look at someone else’s property.
Not Researching the Neighborhood
It’s absolutely critical that you research the neighborhood before you buy. Check out the area, amenities and the school system to be sure that your address corresponds with the correct school district. Also attend a community meeting, if possible. You’re not just buying a house, you’re buying a piece of that real estate and the land around it.
It is not only home buyers who make mistakes. Investors too have their own share of failures hence the need to know what to avoid as a beginner investor. You cannot work without a plan but unfortunately many investors have no plan. Many have been made to believe that real estate is a get rick scheme but unfortunately this too is a lie.
Planning as you go. Andy Heller, an Atlanta-based investor and co-author of “Buy Even Lower: The Regular People’s Guide to Real Estate Riches,” says lack of a plan is the biggest mistake he sees new investors make. They buy a house because they think they got a good deal and then try to figure out what to do with it. That’s working backward, Heller says. “First, you find the plan,” he says. “Then you find the house to fit the plan. Pick your investment model, and then go find property to match that. Don’t find the strategy after you find the home.”
- Thinking you’ll “get rich quick.”That kind of wrong-headed thinking is fueled by “these self-appointed gurus who have infomercials and make it sound so easy to get rich in real estate,” says Eric Tyson, co-author of “Real Estate Investing for Dummies.” It’s not easy. It’s a good long-term investment, but so is putting your money in a mutual fund, which is a lot easier. “These gurus don’t talk about all that hard work. You have to be smart, you have to be willing to work, and you have to understand your risk tolerance.”
People also make financial mistakes. They borrow loans without carefully calculating the interest they will have to pay back. The other problem is spending too much in buying that you fail to set aside money for repairs and renovation.
You may borrow too much based on your present situation. You must make allowance for changes in your circumstances in the future. Be especially careful of loans with payments which increase at a later date.
You may spend too much on the purchase price of a home and have insufficient money for your inclusions, improvements or furnishings. There are few things more depressing than having the home you want in the right area and being unable to afford curtains or light fittings. In extreme cases, the cost of the home can seriously hurt your living standards.
Don’t ignore your ‘instincts’. The right home has the right feel, just as the right person has the right feel. No-one should buy a home without having that ‘feeling’.