Real estate is undoubtedly one of the most recommended and safest investments that anyone can consider. Owing to the constantly growing demand for good housing in cities, you can be assured of a good return on investments from real estate. However, if you are new to real estate investments, it is highly imperative to know the most common investment mistakes that people make while planning to buy a property. Being informed about these mistakes will help you to make the right choices and avoid situations that can cause financial loss.
So let us discuss the 5 common real estate investing mistakes you should avoid.
- Not doing proper research
This is one of the most overlooked aspects of property investment. Prior to investment, you must first analyze the market conditions and conduct thorough research of the prevailing property rates in the desired location. Without proper knowledge and understanding of the market, chances are more that you may get deceived by brokers or fraudulent agents. Once you shortlist a few properties, you must check aspects like location benefits, land value, rental demand, road connectivity, nearby facilities, builder’s history, etc. Various aspects like lack of water supply, air pollution, poor transport facilities and civic amenities can affect your investment if they go unnoticed.
- Not estimating your financial capability
Nothing is as important as evaluating your finances when entering a new investment deal. Apart from the major expenses like the cost of the property, taxes and registration fee, there are many other hidden costs involved in property investment. If you are buying a house you have to consider maintenance costs, cost of furnishing and interiors, cost of repairs if any, utility charges, etc.
Prepare a detailed document of the expenses and check whether you can afford it. If you are planning to take a home loan, then you must consult with a bank to know your eligibility. Having a good credit score will help you get a loan at lower interest rates and longer repayment tenure. A credit score of 700 or above is considered to be good and increases your credibility to get a loan.
- Not checking the builder’s reputation
Choosing a reputed and trusted real estate developer ensures the credibility of your investment. A renowned real estate brand will procure all relevant legal permits and documents required for property sale. They also ensure that their projects are approved by RERA to ensure transparency in all transactions.
Moreover, a well-experienced developer will always go that extra mile to satisfy their customers. If you are buying a home or an apartment from a reputed brand, you can be assured of good quality construction and excellent customer service. You can visit the company website, social media pages and project sites to get a complete picture of the developer. Alternatively, you can also seek feedback from previous customers or buyers to check the builder’s reputation.
- Not choosing the right type of property
Once you have made a decision to invest in real estate, you should also decide which type of property you are going to invest in. You can either buy a residential property or invest in a commercial space. Most of the first-time investors tend to overlook this aspect because they may not have much idea about the real estate market.
Choosing the wrong property can put your money at risk and result in dead investments. Consider buying properties in prime locations as they will always have great demand. Also, look for in-house amenities and civic facilities nearby the property. You can get good resale value and returns from such properties. Depending on your budget and purpose, shortlist a few properties and seek help from a trusted property advisor to find the right bet.
- Not seeking expert advice
Most investors don’t consider seeking professional help for real estate investments. They think that they can be successful investors even if they don’t talk to any industry experts. But this may put them in trouble later on for there can be many unknown issues associated with properties. Interacting with a reliable property advisor will not only save you from fraudulent offers but will also ensure that your property is free of legal issues. An experienced real estate agent can find you a good property at a fair price deal. Also, it is always ideal to consult a financial advisor to plan your expenses and prepare yourself for the investment.
Ready to move Commercial and Residential Properties from BMRI
Located at 15 min walking distance from station. Situated near to market, hospital, school, temple. It provides the finest for an Ideal Home.
It is one of the most reputable address of the city with easy access to many famed schools, shopping areas, hospitals, recreational areas, public gardens and several other public amenities. The Project is at a very good proximity from school, market, banks & station. A location which allows to enjoy a chill breeze of beach on weekend by just driving for 15 minutes.
Located next to Virar, it has direct road access to the Mumbai Ahmedabad Highway (NH-8). Mumbai Chhatrapati Shivaji International Airport and Bus stand are also easily accessible from here. In addition, beautiful beaches (Kelva, Mahim and Satpati), ancient forts (Kelva and Shirgaon) and Manor Dam in the vicinity of Palghar make the place an attractive tourist getaway. Maharashtra’s largest fishing center, Satpati is also at a driving distance from Palghar West.
Real estate in Palghar is slated for growth, mainly, because of the proposed bullet train which will connect two main cities Mumbai and Ahmedabad. This town lie to the north of Mumbai and are on the periphery of the Mumbai Metropolitan Region. Coming back to the bullet train, the first train is likely to run by 2024. The current travel time between the two cities is 7 hours; the bullet train will cut it down to only 2 hours. 11 railway stations are being proposed along the route; on the Maharashtra side of the border besides the Terminal at Mumbai’s Bandra-Kurla Complex, Thane, Virar and Dahanu are likely to be the other stations.
Palghar is placed on the Western Line of the Mumbai Suburban Railway on the Mumbai Ahmedabad rail corridor. And is very easy for everyone to access the railway station. Last year, Palghar was given district status making it the Thirty Sixth district in Maharashtra.
About BM Group
BM Group (BM™) is a company established in early 90’s and is based in Mumbai, India. BM Group (BM™) serves for Property Development and Real Estate Consultancy of residential, commercial, warehouse, land, and retail leasing in different regions of Mumbai, Palghar, Thane, Ahmedabad, and Rajkot.
We at BM Realtors & Investors, LLP have always saved a soft corner for you while offering our spaces which now come with a benefit exclusively designed for you to feel the luxury of being attached to us. The time has approached to express our soft corner by turning it into reality and stepping ahead to come closer to you with a long lasting relationship with you and your generation next. Join the Boon Club