5 Common Mistakes First-Time Real Estate Investors Make & 5 Effective Ways To Avoid Them

February 6, 2022by Collins0

Despite the fact that real estate remains the most guaranteed type of investment all over the world, it is salient to bear in mind that quite a number of investors still lose their money due to some avoidable mistakes.

Here are 5 of such common mistakes and advice on how best you can avoid them

1 – Being Afraid to take Action

Interestingly, being afraid to take action is a common challenge for most first-time investors, and this is usually due to lack of confidence, lack of knowledge, the fear of failure and so on.

It is okay to be afraid, but always remember that there is no success without action. Likewise, it is very important to remember that action is an antidote to fear.

Nonetheless, to properly overcome the aforementioned doubts, it is advisable to consult with professionals like Real Estate Dr’s Enterprise Ltd. (REDOC).

2 – Poor Choice of Location

Acquiring properties in areas that are too far from basic amenities like schools, hospitals, supermarkets, and commercial centers is a terrible mistake to make when investing in real estate for the first time, because the location of a property remains one of the most vital factors that determines if a property has potential for future appreciation in value.

More so, every other component of a property can be modified to reflect contemporary realities, except the location. So always choose a location with proximity to essential amenities or potential for future appreciation in value.

3 – Not Having A Clear Goal

One common mistake first-time investors often make is acquiring a property without having a goal which they would like the property to achieve for them.

The best way to avoid this mistake is by setting a clear purpose for which a property is being acquired, because it makes managing the property alot easier. Some purposes to consider include acquiring a property for: residence, short/annual lease, or holding it to sell later for profit.

4 – Ignoring Paperwork

Out of excitement some first-time property investors might fail to verify documents or read contracts carefully, this may later result in them losing their money, the property, or both.

It is always advisable to review property documents with a legal advisor or property lawyer to be sure that they are authentic and up to date.

 

5 – Being Dishonest about Budgets

Well, first time investors are usually skeptical about disclosing their budget in a bid to have some privacy or protect themselves from opportunists. But in doing this they end up limiting their options, and may most likely miss out on some fantastic opportunities that they are qualified for.

To avoid this mistake it is only proper that you are honest about your budget when engaging the services of a real estate agent or property consultant, because these professionals clearly understand the value of confidentiality.

 

Knowing where to invest your money could make all the difference in your Real Estate success story.

We therefore encourage first-time investors to take advantage of our FREE investment advisory services, because our investment advisors are well experienced and always willing to provide you with all the support and guidance you need to guarantee a hitch-free investment experience.

Call or Send a Whatsapp message to 09127606009, 08140285704, or 08170791153 to schedule a meeting with an investment advisor.

 

Author: Christopher E. Nwelih

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