The real estate game is quite hard to navigate in these troubled financial times. Before, it was possible to make a property investment and to be sure that that investment is going to pay off. However, today, with the omnipresent shortage of money, the profit is by no means guaranteed, and there are many bad shortcuts that you can take. These shortcuts can easily leave you lying naked in the bankruptcy bushes with multiple financial cuts and bruises.
Don’t let your heart cloud your judgmentWhen purchasing your first home, it is only natural that you will let your emotions decide what you are going to purchase. You will live there, possibly for the rest of your life, and because of this, you will need to make sure that the house has that real ‘feel’ about it and that you will be able to call it home.
However, when making a first-time investment in a house that is supposed to pay off later on, it is most definitely undesirable to let your emotions rule your purchase. You don’t want to end up with a house that you cannot rent or sell, just because you liked how the lawn was done or how nicely painted it was. Also, letting your emotions rule your purchase can lead you to over-paying for a house, thus going into red from the very beginning.
This is why it is advised to perform thorough checks for the property that you are willing to purchase. Is the neighborhood right for attracting quality people to live there? Will the property provide the return that you require for the invested capital? When making an investment, always bear in mind that real estate business is governed by economy, not emotions.
Rushing in or procrastinatingThere are three types of real estate investors, and these are: rushers, procrastinators and those who are in the middle. Of all these, only the last ones have a chance of making money in the real estate investing business. The other two groups usually never make it past their first investment, if they make one at all. And here’s why:
The rushers are the ones who attend one seminar and see this as an excellent opportunity for them to get rich over-night and get out of their financial troubles. This is why they jump the first wagon that is open to them, and buy the first property they hear about. After that, they are left with a property they can hardly sell, or can hardly recoup the money they invested. When this happens, they usually quit the property investment, and that’s the end of it.
The procrastinators are the ones who go beyond that one seminar. However, they have another problem. They go to too many seminars and get their minds overburdened with information. This abundance of information leaves them baffled as to what to do, and they usually pass up vital opportunities just because they are unsure of their further doings. They analyze things too much and end up doing nothing. This is called paralysis by analysis.
The best thing to do here is to find the middle ground. While the first group may overcome their mistakes and learn through their experience, the second group will never get into the property business. This is why it is essential to note that you cannot learn everything at the beginning. You should learn as you go, but be sure to learn quickly. Only this way will you succeed in the harsh game that is real estate investing.
In the end, all I have to say is to stress that these two of the most common mistakes should be avoided at all costs, because if you make them, you can count yourself out of the game before you have even joined properly. Avoid them, and there are great chances that you will prosper. Who knows, maybe in a few years’ time you will be the next big thing that happened in the real estate investment.
Damian Wolf is a writer and online marketer. He mostly writes about business opportunities and self development tips. Damian currently works on advanced online strategy for Simple Home Invest website , great Australian property investment service.