Pitfall 1: Expecting sky high returns in a short time
We have met people who said things along the line of—
“Making $100,000+ in 3 years is not worth so much hassle.”— when we could be talking about a net return on investment of around 10%-15% per annum.
So our question back to them is: Do you have something else you can invest in that gets you this return?
Pitfall 2: Analysis Paralysis
Some buyers fall trap to analysis paralysis, where one faces an inability to make a decision due to overthinking; they Google extensively, read blogs and forums, watch many YouTube commentaries or ask around for too many opinions.
Some end up spending years before eventually buying one, or in some cases, not buying entirely.
Money cannot buy back time and lost opportunities. Seek a real estate professional’s help if you find yourself in this situation.
Pitfall 3: Failing to understand that properties are not like stocks
Data analysis is important. However, some property investors are overly fixated on certain metrics. Unlike the stock market, where shares of a company are uniform, each and every development or unit can be very different (condition of unit, facing, layout, and so many more factors).
We need to bear this in mind and identify the right and relevant data to use when we are making a decision in property investment.
Pitfall 4: Being easily influenced by friends, family and media
Well-meaning friends and family may have your best interests at heart, but oftentimes, they do not have experience in property investing, or their experience may be outdated or irrelevant to your situation.
Learn how to distinguish sweeping statements from justified advice.
Pitfall 5: Not wanting to work with a real estate agent
Many buyers think that they can embark on this journey without the help of a buyer’s agent.
Let’s put it this way— if you are not a full-time professional in this industry, you are not out on the ground understanding all types of properties nor analysing data and trends, on a day-to-day basis.
How confident are you in picking out the right property that is poised for good long-term growth?
Pitfall 6: Not being able to distinguish personal preferences from investment quality
What you like in a home may not necessarily be the best for investment.
If you are looking for a pure investment property and are not planning to move in, you must look at data and trends, crunch the numbers, and leave your emotions at the door.
Speak to us if you’d like a non-obligatory free consult!