Property investment is a lucrative process for many. For others, however, it provides an uncertain financial future. The reason for this is that many people make the eight most common property investment mistakes there are, and because of that they lose a lot of money. These common property investment mistakes are referred to as common for a reason. If people didn’t make them so often, they wouldn’t be so common. Save yourself time, money, and financial uncertainty by learning what these mistakes are and how to avoid making them.
Not Having a Plan
An investment plan is the most important thing you can have when you decide to make an investment. Without having one, you will lose money; it’s practically certain. You need to know what you plan on spending, how you plan on making more, and what you will do with this investment before you purchase it. Otherwise, you are in for certain financial ruin. You must have a plan and a goal, and you must work toward that goal at all times.
Taking Investment Advice from Anyone Other Than Professionals
Your friends and family members are really great people – probably, since most families have their crazy counterparts. However, they probably don’t know much about investment property unless they are personally into investing in property. If they don’t know anything about it, don’t take advice from them. In fact, don’t take their advice at all. Nod, smile, and do not commit to anything. They mean well, but you don’t want to have a deep resentment for them in the future because you listened to their horrible advice.
Buying for Too Much
If you are going to invest in any sort of property, you must buy that property when the price is significantly below the market value. Otherwise, where are you going to make your money? You cannot invest in a property that is selling for what it should sell for, make changes to it, and hope that you get more for it. You have to buy well below market value.
Making Investment Decisions Based on Emotions
You love the house you grew up in, and if you don’t buy it now, someone will knock it down and build one of those faceless McMansions on it that look just like every other house on the street. However, you cannot simply invest in this home because you don’t want to see it get knocked down and turned into an apartment complex. You need to make sure that it is a sound investment before you purchase, otherwise it’s an emotional purchase that you will likely regret at a later date.
Buying the Wrong Property
You know that you cannot make money if you buy a bad investment. This means you need to do the obvious and buy the right property. You need to do your due diligence and research, research, research until you are certain that this property is the one that is going to make you a significant amount of money, rather than cost you a significant amount of money.
Not Reviewing Your Own Portfolio
So this isn’t your first investment property. That doesn’t mean you know it all. You need to look regularly at your own portfolio to see patterns; find out what changes you can make to earn more, save less, and work faster. It’s not that hard, and you can only learn from it.
Not Managing Your Risk
You must be able to financially afford the investment properties you own. You don’t want to have to sell one because you don’t have the cash to keep it. Manage your own risk to know that you are financially secure enough to handle your investments.
Not Utilizing the Advice of an Expert
You shouldn’t invest in anything without trusted financial investment advice from a professional. No rich person ever has, and none ever will.
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Jeff Gross works on homes for sale in New York website. He has been a marketing pro since 2009. Jeff is specialized in content management ans social media marketing.