Nowadays, there is countless of people out there have achieved a significant increase in their net worth through property investment. You might have heard of a relative, colleague or friend who likewise, have gained a significant profits when they sold out a property that they have invested in few years ago.
Additionally, others have even achieved financial freedom through their property investment journey, as their portfolio of well-chosen properties has given them a sustainable growth of rental income, profits from property flipping and etc.
Investing in property is requires well planning, preparation and implementation work, just like investing in any other investments. In order to succeed in property investment field and create a massive wealth for yourself, here are 3 pitfalls that you should avoid before you jump in it;
#1️⃣️: Failed to do a thorough research and lack of preparation
In order to make a significant profits through property investment, you will have to put a lot of hard work in searching the worthy property deals, create a property investment plan & goals for yourself, which property fit into your investment plan, understand how to calculate the cash flow that can be derived from the property investment and etc.
Besides, unlike stock market investment, you can’t liquidate this asset (investment property) immediately without considering the risk of loses to the actual value of the asset itself. Therefore, you should do a thorough research and make sure this property can help to achieve your investment goals and a full preparation is needed before buying any investment property.
#2️⃣️: You can’t get rich overnight
In some seminars, you may heard that the so-called property experts said about get-rich-quick through property investment. Here we tell you what, NO WAY! This cannot be further from the truth. It need to takes quite lot of time to pick a good property that will have a better appreciate in value over time. In addition, if you have invested in the right property, you will need even more time to wait for its appreciate in value. Hence, don’t be fooled by the so-called property gurus.
#3️⃣️: Skip the due diligence
Not all the properties can bring you the significant appreciate in value over time. It consider some major factors such as future development plan in the area, population trends, economic health in the area and many more.
Unfortunately, most of the newbies property investors buy investment properties based on “gut feeling” or self-thought that the given properties are definitely appreciate in value. Most of them buy the property based on the sales pitch given by their property agent. They are even skip to do their own due diligence about the deal and the costs or the current market conditions. It will cause they lose their personal hard-earned savings as the house needs a large-scale repairs or unable to sell it out.
The above are the 3 common pitfalls of investing in property. Always do your own research thoroughly in the property you are keen in investing. If you can commit to thorough research before committing to a property, you will avoid the mentioned pitfalls that has troubled investors and radically increase your wealth of making a successful investment.