top 10 real estate investment mistakes on debut
DESCRIPTION
With mass participation from the young professionals of the city, the Real Estate market of Chennai has seen a boom in the last decade. But investment has not been as easy or safe as it seems from the outlook.TRANSCRIPT
Top 10 Real Estate Investment
Mistakes on Debut
With mass participation from the young
professionals of the city, the Real Estate market of
Chennai has seen a boom in the last decade. But
investment is not as easy or safe as it seems from
the outlook.
Penciling out your deal
Write down & calculate; A negative cash flow
property will only offer you a measly return
on investment- that will hardly cover your
property maintenance expenses.
Wrong estimation
Overestimating Returns &
Underestimating the cost; Lack of
Chennai Real Estate Market
knowledge.
Wrong renovation approximation
Take advice from an experienced investor; Be
more than a little bit conservative in your
renovation budget estimation.
Undermining renovation time
Have a realistic perception;
Thinking of the words ‘that much’
It is best to be prepared for such a situation;
Expectations taints the realistic view of the
transaction but awareness can sometimes
overshoot, if necessary.
Thinking it’s a ‘turn-key’ deal
Without contribution from the investors’ part
it is never going to happen.
Flipping properties
Flipping is a good option only when the
market in on the rise; Do your homework, get
detailed knowledge about the present Real
Estate market conditions in Chennai.
Comparing to stocks
Unlike stocks, where you look to your bank
statements every few months, you need to
deal with bigger issues right away in this
kind of investment.
Assuming it as a low risk sector
Risk is a factor associated with all kinds of
investments. It depends on how accurately
you analyze the market conditions.
Taking someone for his words
Skepticism and Analysis are the main tools
towards getting the best of everything and
everyone.
These are the ten commonly recurring
mistakes a novice real estate investor in
Chennai is most likely to make; Avoid them
from now on. Do not make any assumptions;
just go by the facts and figures as they are.
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