The Six Most Common Mistakes when Investing in Properties

 

There comes a time in life when we must think of a plan to have an income without having to dedicate so many hours of work, enjoy more time with the family and enjoy economic stability.

Investing in properties could be the best decision to reach your financial and personal goals, but be careful not to make mistakes that put your savings at risk! Below, established real estate developer Jack Bistricer, shares the six most common mistakes when investing in properties.

Why should you invest in property?

One of the reasons is that real estate is a safe asset and that it maintains a stable demand, despite economic downturns.

In fact, Jack Bistricer, Chairman and CEO of Talisker Club emphasizes, it is estimated that by 2030, more than 2 billion people will be living in rental housing due to cultural changes. These generations choose to delay marriage, have a small family, or simply do not have the capital to buy a home.

Therefore, for those who seek to generate income to increase their family assets, it is good to invest in properties to use for rent and anticipate demand.

Common mistakes when buying a property

If you are going to buy your first property, it is normal to feel excited, but do not stop being realistic. Investing in property can be a great business if you do it the right way and do not make some of these mistakes:

1. Do not fit the times

You should consider that the purchase of an investment home is a project that delivers long-term returns. Applying for a consumer loan, for example, instead of a mortgage, will cause you to have to pay off the debt much earlier.

2. Do not compare financing alternatives

Not only must you choose the correct property -the one that generates the greatest capital gain-, you also have to evaluate the most convenient mortgage loan. For this, Jack Bistricer recommends KPI, an indicator that serves to choose the cheapest credit among all the options that you find in the financial market.

3. Not checking property titles

The property title is a document that certifies the condition of the property, that is, it guarantees that everything is in order in terms of ownership and processing. Avoid legal problems for not having checked if the property you are interested in complies with all regulations.

4. Do not inquire about the real estate

Check the years of experience they have in the market and if they have what you are looking for (house, apartment, area, among other variables). You can inquire about the offers in the sector and broaden your perspective on the properties to invest.

5. Do not consider taxes and maintenance expenses

It is good to invest in properties if the management is done correctly. This involves considering the initial expenses, but also the resources that you are going to allocate in the maintenance of the property and in the payment of taxes. Planning the above well will allow you to have greater clarity about the possible perceived returns.

6. Failure to seek advice from experts in real estate investments

The idea is to invest informed and know the best investment opportunities. A real estate professional such as Jack Bistricer, can give you advice on how to increase your chances of making a profit and whether to invest in property in a specific location.

At Talisker Club, Mr. Bistricer works with a team of expert professionals with extensive experience in the real estate market. In addition, they have a portfolio with the best properties to invest. Do not hesitate to request information and fulfill the dream of financial freedom.