If you’ve been in the property industry for a while or you’re probably just starting out as a newbie in the property market maybe with your first house or land purchase. Chances are that you may make this simple mistakes that most investors make. While some may have some grave consequences some others might just be learning curves for you in your journey to wealth creation.

Some of these things might turn out to be simple/basic things that might leave you wondering why these mistakes where made in the first place but truths are always SIMPLE after all.

MISTAKE 1: Buying where there’s NO DEMAND.

This is particularly important for home owners who desire rental income, This should be your number one priority. when you buy into a property that is currently being demanded for chances are while construction is approaching its finished state, you’ll be getting offers from individuals who are in need of a house and this is simply because you have a created rental spaces that align with the needs of the market. It’s very easy to get swooned by aesthetics and grandiose of a house while you ignore the economic impacts on your finances. A rental income not generating any income can be frustrating, not only have you parked a large sum of money into an asset but you stand the chance of renting your property for less than your planned income. Alternatively, if you must buy into such a property always have a plan in place to help effectively sell your space.

MISTAKE 2: Buying based on Speculation ALONE.

Speculation in itself is not a bad thing but must be backed by concrete evidence before you go ahead to commit yourself financially. It is considered reckless to invest a large sum of money based on spaculation without having enough proof to back it up. Humans possess the ability to follow crowds and adopt certain beliefs that may not in itself be true but might look true because of how popular these speculations might be. For instance, If you decide to buy a house or land and you heard that they were about to construct a road in the area that would help the area appreciate in value (that is a speculation) and instead of taking it hook line and sinker it would be best to do some research on how true that claim is. Try visiting the local government/ traditional ruler of the area chances that any development would happen without their knowledge is very rare. Confirm if there’s a spec of truth in it and the timeframe when these projects would be completed.

MISTAKE 3: NOT Buying with the end in mind.

Many people believe that with real estate investing, they can never go wrong. so they invest their money into just any property that comes along. while this is not bad in itself if all that you do is investing to just park your funds pending when you might have need of it, but if you plan to get the most return on investment, it would make lots of sense to invest with a goal in mind. First you must determine what it is you want to do with the property, how long you plan to invest or own the property that way it would serve as a guide to getting the property with the best returns.

MISTAKE 4: Not VERIFYING before making a purchase.

This matter cannot be over flogged. While we think this is no longer an issue in this century, we see this becoming very prevalent in recent times. Most individuals prefer to buy property from real estate companies and without going further to verify if these companies have complete documents or titles to these properties they commit to buying these properties. If the companies succeed in perfecting all their documents, you’ll end up having full claim to your own assets but if there happens to be a glitch in the course of these transactions between the family land owners and the property companies, the worst hit would be the investors who have bought into these properties leveraging only on the company’s popularity.

MISTAKE 5: Not having a CRITERIA LIST to vet property deals.

For every type of investment it is ideal to have personal guidelines that help you with your decision making regarding the kind of investments to put your money into. There are so many property deals out there that look very enticing and have the ability to generate returns but the onus is on you to determine which you would like to give your attention to. A simple guideline is listed below:

  1. Invest in premium properties
  2. Invest in assets that have the ability to re-coup capital within 10 years.
  3. Invest in Joint Ventures that allow a minimum of 10 years of maturity.

This list can be adapted to suit your preference and financial position.

I do hope you enjoyed reading this, I have a mailing list where I always put out information on the best deals, where to spot them and how to get them ASAP. If the property sector is a place you intend to create real wealth for yourself then kindly subscribe to may Priority list below.

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Hello. My name is Confidence Iwuoha, did you enjoy my blog? If you did don't forget to join my mailing list so you get notified when I publish more content. See you in my next post.

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