No one is born perfect. We all commit mistakes and when it comes to dealing with properties inBangalore, then nothing can better than going through those fatal mistakes that every real estate dealer commits.
The series of mistakes can range from underestimating the repair costs to ignoring the inspection of the real estate property. The intensity of your mistake shall get a reversal in the form of financial losses. Let’s learn few of them from beforehand so that they can be avoided.
1) Bad financing
Bad financing encompasses paying higher interest rates, personal recourse and making balloon payments. Most of the national banks save you from higher interest rates. However, you still need to set attention to the personal recourse to avoid a financial setback.
2) Bad location
Investing in the low-cost property located in a remote area. The cost should not be the only parameter to attract you. Do you think it’d be viable to wait for the next 50 years for the property rates to hike at that area? Evaluate your decision wisely.
3) Misjudging rent/sale value
Hire professionals for letting you what rates can your properties fetch you. Do not settle for less.
4) Underestimating the renovation costs
It is quite natural for the property dealers to underestimate the repair costs. Attend real club meetings and seasoned realtors for exactly summing up the property costs and investments.
5) Keeping less cash in hand
Keeping the lower amount of money in hand is not viable when you deal with real estate agents.
6) Wrong real estate technique
The time wasting wrong methods of investments can fetch negative returns to properties. Avoid indulging in wholesaling. Do not just rely upon a single realtor for drawing conclusions. Take advises from lawyers and legal agents before initiating any strategy.
7) Choosing bad contractors
The real-time knowledge about the fix and flip along with market rates and taxations is something that must be known by the hired realtors. Do not simply invest on someone who is providing low-cost services.
8) Wasting the diligence period
Fast closing is good in case the offered rates are profitable. However, when someone offers lower rates, then it’s better to avoid such deals and prefer to wait. The properties in Karnataka have been seen to sold manifold better than what they had been bought at. Wait for a striking dealing instead of simply hurrying up with everything.
9) Letting the emotions overpower you
It is quite natural to feel impatient for selling a property. However, calculating the cap rate and internal rate of return for making decisions is equally important. The money that you would give a year later for the property is not as worthwhile as received today.
10) Not learning from the mistakes
The mistakes as mentioned above can make you figure out 20 more relating to it. There is always room for making mistakes in case of property dealing no matter how cautious you act. UT all comes with grooming and parties.