Congratulations To Our Wonder Box Lucky Winner Mrs. Aradhna Jain (Plot no. 34, Size: 50 sqyards). Now We Will Pay Her Remaining EMI.

avoid these mistakes to have great real estate investment

avoid these mistakes to have great real estate investment

Investing in real estate is an enormous task. A prospective buyer, first time or otherwise must consider a number of factors before committing to a piece of property. However, there are some basic mistakes that a prospective buyer can avoid. This list will attempt to provide some clarity in the messy business of investing in real estate.

Research

This is the golden rule. The importance of research cannot be stressed upon enough. A fair amount of research can make all the difference between a good investment and a bad one. Attention should be placed to details such as

  • Location
  • Type of locality
  • Connectivity to hospitals, schools, airport, etc.
  • Property rates as well as the rates of neighboring properties
  • Is the house located in a problematic area like a flood-zone?
  • Is the home insured? Will the property require additional maintenance expenditure?
  • Judging the market value of the house and find out if you are paying above the market value.

Ask yourself questions. Assess if the house will be mainly for living purposes. If not, then can the house be rented out? Or, can it be put on the market again? If so, what will be the value of the house then? All in all, be clear about the purposes you have in mind for the house and proceed accordingly.

Discuss

Discuss your plans with others. Consult with family, friends, other buyers as well as sellers. Inform yourself of policies such as the RERA that protect consumer rights. If necessary, seek professional advice from consultants who know their ways around the real estate business. Discuss loan strategies and more importantly, set investment boundaries.

Set Investment Boundaries

It is also very important to figure out what one requires from the property they are looking at. An easy and foolproof way to tackle this would be to make a list of requirements. A list of requirements also assists in the setting of investment boundaries. If one does not set an investment boundary, chances are that they will end up paying a lot over the stipulated budget and incur heavy losses. The buyer should also evaluate other properties instead of setting their sight on one. It is often the case that sellers confuse buyers to get them to buy their property. In these cases, to avoid this confusion it is best to consider other prospective properties too.

Tax Benefits

Remember your tax benefits. This is a very important step as overlooking this step will guarantee heavy loss and no monetary returns. Keep track of tax benefits on existing property and any new property you might be investing in. It usually helps to have a consultation team as they will keep you informed at all times.

Bad Financial Decisions

This is one of the trickier areas in real estate investment. Bad financing has severe and unalterable consequences. Experts say that bad financing is one of the ways in which investors lose most of the money. First off, the buyer needs to be aware of their credit score at the bank. If they haven’t paid off earlier loans it is likely that the bank will not offer any financial assistance to make the purchase. It is advised that the buyer clears any loans they have in the bank before setting out to invest. However, this can’t provide any guarantee, because in 2008, during the credit crisis, refinancing became very difficult. Bad financial decisions can be a combination of factors such as

  • High-interest rates
  • High monthly payment
  • High rates of borrowing
  • Balloon payment

All of the above are connected to each other. Mortgages only allow borrowing of 80% of property cost. It is advisable to not borrow more than the stipulated 80% as that could endanger future assets one is borrowing against. High-interest rates combined with high monthly payment can very easily lead to a balloon payment in a short period. This is again, not advisable as selling and refinancing to combat the balloon payment is a difficult and time-consuming process.

Debt

This is another important aspect of real estate development. Research on how debt works and chart out the best plan for payment. Experts advise buyers to choose for debt with lower interest rates and a larger down payment. This ensures that the debt incurred is paid off at a steady pace.

Of course, it must be remembered that there is no foolproof way to success in real estate investment. However, with diligence and attention to detail, certain problems can be anticipated. This list attempts to inform prospective buyers of basic problem areas.

 

This disclaimer (“Disclaimer”) will be applicable to the Website. By using or accessing the Website you agree with the Disclaimer without any qualification or limitation. The Company reserves the right to add, alter or delete material from the Website at any time and may, at any time, revise these Terms without notifying you. You are bound by any such amendments and the Company therefore advises that you periodically visit this page to review the current Terms.
The Websites and all its content are provided with all faults on an “as is” and “as available” basis. No information given under this Website creates a warranty or expands the scope of any warranty that cannot be disclaimed under applicable law. Your use of the Website is solely at your own risk. This website is for guidance only. It does not constitute part of an offer or contract. Design & specifications are subject to change without prior notice. Computer generated images are the artist’s impression and are an indicative of the actual designs.
The particulars contained on the mentions details of the Projects/developments undertaken by the Company including depicting banners/posters of the Project. The contents are being modified in terms of the stipulations / recommendations under the Real Estate Regulation Act, 2016 and Rules made there under (“RERA”) and accordingly may not be fully in line thereof as of date. You are therefore required to verify all the details, including area, amenities, services, terms of sales and payments and other relevant terms independently with the sales team/ company prior to concluding any decision for buying any unit(s) in any of the said projects. Till such time the details are fully updated, the said information will not be construed as an advertisement. To find out more about a project / development, please telephone our sales centers or visit our sales office during opening hours and speak to one of our sales staff.
In no event will the Company be liable for claim made by the users including seeking any cancellation for any of the inaccuracies in the information provided in this Website, though all efforts have to be made to ensure accuracy. The Company will no circumstance will be liable for any expense, loss or damage including, without limitation, indirect or consequential loss or damage, or any expense, loss or damage whatsoever arising from use, or loss of use, of data, arising out of or in connection with the use of this website.
Please contact our sales team at 0141-4010686 or +91-9314123678 (India) info@thecrowngroup.in for the updates, sales and marketing information and collaterals.”