4 Common Mistakes to Avoid When Investing in Real Estate

If home buying has been on your bucket list for the longest time, then 2014 is the year to realize this dream. You can easily find your dream home at a low market value price on the US soil today. Tons of foreclosed properties in the US are being auctioned across the country at low prices. All you need is market research and you can get your hands on your dream home easily.

However, you should never rush your decision into investing in real estate. Take your time and make sure you don’t end up making the epic 4 common mistakes that most home buyers make in property investment.

Let us walk you through these mistakes, so that you know exactly what we are talking about:

1.  Not Doing Proper Real Estate Market Research

The first home that you on sale is not always the best buying option. Many investors don’t research the market properly and therefore make a hasty property investment decision thinking that the property they are investing in is low priced. When buying real estate, research is the key to informed decisions. Wise home buyers always research the housing market, browse through different buying options, evaluate and compare prices, neighbourhood and other facilities like hospitals, schools, crime level, transport service and quality of life in that area before they finalize their decision. Remember low price should not always be the deciding factor, evaluate other factors too to ensure you make the best decision.

2.  Letting the Emotions Get the Best of You And Exceeding Your Budget

Since home buying can be an emotional affair, many buyers fall in love with a home and decide to buy it even when it is overpriced or exceeds their price range. This is not a sweet mistake, it actually quite bad because eventually when you do buy it and later down the line when you don’t have money to afford it you will have to sell it off. So, why make this mistake? For property investment, take buying decisions with your mind not with your heart.

3.  Not Having the Right Protection Clauses Inserted in The Sales Contract

In the excitement of realizing the home ownership dream, some buyers sign off the sales contract without reading it properly. So, make sure you don’t do this! Always read it properly and make sure the sales contract includes all the right protection clauses that protect your interests. If it doesn’t, then request the seller to insert additional clauses to protect your interest.

4.  Buying Property Without Professional Assistance

Avoid property buying on your own if it is your first time. Investing in real estate involves a great deal of risk. To mitigate risk and increase your chances of earning high returns on investment, hire a real estate company. A professional has the experience, expertise and sound market knowledge. He/she can provide you quality consultancy and help you find and purchase high yielding real estate.