Real Estate Investing

5 Mistakes to Avoid in Real Estate


Adnan Ul Haq

Module 2:Real Estate Mistakes and Frauds

5 Mistakes to Avoid in Real Estate

Adnan Ul Haq

5 Mistakes to Avoid in Real Estate

Everyone wants to invest in real estate, but due to lack of research or any other factor, they face huge losses. If you are also looking to invest in real estate, then you must beware of the major mistakes that others commit. 

You must not commit the following 5 mistakes while making an investment in real estate:

  • Never Invest Less

You should not invest less. Invest in real estate as much as you can because it is God’s money. Its value will keep increasing and land remains secure. If you would invest less in it, you will regret it because you will miss out on a lot of opportunities that are not available later.

  • Never Search at Last Moment

The second mistake that you must not commit is to search property at the last moment when you need to invest. Rather try to find deals all the time. 

A good and cheap land deal is always lurking in some corner. 

See, if you do not look for an opportunity, you will not find it. Keep searching, and always be on the hunt where you can get a property at cheap rates.

  • Never Sell Due to Emotional Decisions

Never sell emotionally. It happens sometimes, you get scared, the value of the property has depreciated, and you sell it. After some time of selling the property, the rates of the property start increasing and you regret that you sold it. So you must never make emotional decisions while buying or selling.

  • You Never Raise Money

The next thing that you regret is that you usually do not raise money for a property. You buy with what you have only and due to this, you could not buy more. Raising money means getting money from someone or a bank and then buying assets whose value is raised after some time. 

Get money from friends, banks, and relatives and invest it when property price is low and sell when it appreciates. You must not consider how much money you have, but you should consider how much money you could raise. 

You should invest it where you are getting a higher rate of return.

  • Never Pay the Whole Amount

The last mistake that everyone commits is that they buy property within their budget.  For instance, you think that I can afford to give 30000 installments only so I will buy here. 

Do not consider your budget only. Instead, you should consider the rental income of the property you are about to buy and set your installments accordingly.

There are many mistakes that people make when they start investing in real estate. The most common mistake is not researching the market and its trends. By reading the points above, you will surely avoid some of those costly blunders while making your investment decisions!