Investing in a highly competitive real estate market can help you build your dream home and create an inheritance for upcoming generations. To own a home is a profitable investment and you could reap the benefits that come along with it. In an era where investing in diversified funds is the key, residential real estate is amongst the most popular option. If you are considering jumping into the real estate market, avoid these 3 investment mistakes that will put you into the right track:
Lack of Groundwork
Before investing in a property it is important to do your homework. Lack of sufficient research is the most common mistake that could make you land in a tight spot. The foundation of the right investment is a 360-degree research of the property, including the building type, location, construction quality, previous ownership, builder’s history, etc. A detailed groundwork will help you to uncover all the aspects of the property that could bring down the value of the property in the near future. Be aware of the factors like the zone where the property is situated, presence of all the required permits, presence of good schools and hospitals near the property, infrastructural development around the property, value of the neighbourhood in terms of property appreciation and value and the safety quotient.
Failing to Plan the budget
If you want to invest in real estate, you must have a plan. Having a budget and sticking to it comes from thoughtful planning. Rushing into a deal and investing on the fly is a pitfall that needs to be avoided no matter how good the deal is. It is important to remain patient and wait for the right time to make an investment. Investing in a property requires careful consideration in terms of the potential of the property, market value, hidden costs, etc. Planning ranges from rightly anticipating property’s potential, finances to the cost of the utilities. It is important to plan buffer finances for the final deal and have a backup plan ready in case the need for exit or selling the property arises.
Ignoring legal compliance
Being aware of the laws and regulations of the state you are investing in could help you be on the safer side of the deal. Consider legal factors like housing laws, tax regulations, mandatory clearances, and certification, etc. Ensure that the investment is legally compliant and holds all the required documents. Ignoring paperwork is another dimension of this factor that goes unnoticed. Failing to go through all the terms of the contract and documents could result in a bad deal. It is best to hire a professional for carefully scrutinizing the legal clauses of the contract to avoid any legal hassles in the future.
The right amount of planning;
research and prioritizing your financials could help you minimize the investment mistakes and could bring profitable returns on your investment. Take your time to plan your deal carefully and don’t let these common mistakes become a roadblock.
Chandigarh is a city that has one of the finest universities, schools, and hospitals. The demand of 3 bhk in Chandigarh is touching the sky as more and more buyers are interested to settle in and around Chandigarh. The properties in the region have great resale value and hence a preferred option of investors.