Investopedia simply defines Investment Property as ‘real estate property that has been purchased with the intention of earning a return on the investment, either through rental income, the future resale of the property or both.’ There is no doubt that property can reap you some significant rewards with the passing of time. It is one of the best forms of investment. As with most endeavours, it’s possible to make rookie errors. These are some of the mistakes that new property investors make.
Not getting clued up
Doing thorough research is important when looking to invest in property because understanding the property market takes time. Not getting the relevant information can lead to a loss instead of a profit. Tasks like comparing prices in different areas well in advance so you can make an informed decision when choosing an area to invest in, take time. Read up on the area and speak to town planners to find out what type of development is planned for a certain area. This will be useful information whether you are to own land or a building in that area.
Being financially ill-prepared
Buying property for rent or future resale involves several fees, including transfer duties, that you might not necessarily be prepared for. This is where an estate agent especially comes in handy. They are equipped to give you all important information regarding purchasing property, this includes the type of property, the type of area, all costs you can anticipate, etc.
Making decisions using emotion instead of logic
When looking to buy investment property, the more profit it can yield, the better. This means that you would need to decide on a property that makes the most financial sense. There are properties that look like a dream yet require a hefty amount for maintenance. Making decisions that appeal to your heart more could also lead to you buying property that you cannot actually afford.
B-Sure Properties deals with successful property investors, contact us for your property investment questions.