The real estate world is full of roadblocks and detours but given the right map and a good head for navigation, it’s quite a lucrative avenue that brings in a good deal of returns. But if it’s such a good investment then why are only a few people in it to win it? That’s because misconceptions and myths surround the industry and we are here to help us debunk them.
- A property’s value is equivalent to its asking price.
Not all the time. Just as the experts say, always take real estate ads and seller information with a grain of salt. The current market value will be set at a price where buyers are willing to purchase and sellers are willing to sell. It can fluctuate and it’s not set on stone. You’re going to have to ask an appraiser or chartered surveyor for an estimate.
- You don’t necessarily have to visit the property before buying.
You have the option not to but as a rule of thumb, you must. That is if you want to ensure that you are getting a good return of your investment. Open houses are a great way to see the asset for yourself. Photos and description alone should never cut it, not even if you’re buying from an online listing or auction.
- Real estate investments can sell themselves.
If you’re planning to sell rather than to buy then you must know that a lot of hard work is needed in this type of endeavor. Prime properties may have buyers on the line up but that’s not going to be true for all. Plus, it doesn’t guarantee that you’ve got the best set of buyers in waiting. A combination of marketing and strategy will be needed and that’s only for starters.
- You’re going to have to be rich to afford it.
It’s true that properties can cost quite a sum. They are after all big ticket items. But not all of them are crazy hefty. Investors who are looking at it for business or for personal use can still acquire even if they don’t have a six digit paycheck.
- Once you’ve got a portfolio going on then you’re good to go.
Real estate is quite tricky and sensitive which is why many people shy in treading its waters. But with the right preparation you can win in it. That includes having not only a god portfolio of property investments but also a good head when it comes to managing them. Proof? Check back on item number 3.