In the past few blogs, we have been discussing the many reasons why real estate can turn your life around in the best possible way. If done wisely, the profit comes in millions. However, you also risk losing your money to bad investments.
We have talked about the red flags to stay vary off while investing in real estate which include checking if the place is approved by the relevant authority, accessibility and reliability. This time, we will be going in a little bit more detail.
Here are a few tricks that dealers use to lure you into housing societies with a bleak future trapping your investment in real estate for long periods of time with low return of investment or worse, loss of investment all together.
Once you visit, ask your dealer to give you a written guarantee that you file belongs in the sector they have committed to you. In case of a plot, ask for a personal guarantee as well. Dealers can spew all forms of stories to convince you they are telling you the truth, do not believe anything you either do not see with your eyes or the relevant paperwork.
As a rule of thumb, if the price has dropped or stays the same over the period of one year, its time to take your money out.
When you’re starting off, never put all your real estate investment on one place. Choose a variety of places that offer different SOPs, all of which check all the boxes of course. This significantly reduces your chanced of losing your money. Once you have done this, you can always reshuffle when you re analyze the progress of your investments a year later.
When buying real estate, do not trust anyone, not even your friend who is a successful dealer. Make sure even your closest friends check all the boxes. When it comes to real estate, word of mouth or the good old ‘trust’ aren’t sufficient.
Make your own decisions and be professional, and you’re good to go with anyone who checks the boxes. In the end of the day, its your money at stake, no one else will bear the loss. Keep that in mind while finalizing your deals.
Anyone who got you a brilliant deal in the past is very much likely to do it again, so stick to them. And even though they have now gained your trust, still do not forget that we don’t trust anyone blindly. Whether its one plot or a hundred, checking the boxes is the key.
Also, once you start buying and selling more frequently you start getting a better idea of the profitable places to invest in real estate versus the lost causes. By you 3rd or 4th shuffling, the decisions will come to you naturally.
Until them keep the checklist with you.
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