Myths breed misconception for whatever it is associated with. Overtime, people who want to invest in real estate have different tales about what is and is not about owning landed property.
Amidst these misconceptions, it is important to do your due to avoid making the wrong decisions during the investment process.
This blog post identified common real estate myths to give clarity to intending investors about them.
You Must Be Rich to Invest in Real Estate
This is perhaps the most popular myth about real estate. Most people believe that you need a huge amount of money to invest in landed property. This has prevented them from considering or making enquiry about its possibility.
However, there are real estate properties with affordable start prices. Some property can even be claimed with low down payment with the rest spread over months. For example, land banking is an affordable real estate investment, you buy undeveloped land and resell at a higher price.
You Don’t Need Real Estate Investment As A Young Person.
Apparently this notion no longer works among the young. Most young people are now looking for investment opportunities with rewarding returns.
As is it real estate investment is a promising one and it is not surprising to see young adults engaging in it. There are properties promo tagged with ‘young investors’, ‘child landlords’ that require an affordable amount to acquire them. Parents even invest in real estate as a financial security for their children.
As a young adult, if you have the fund and opportunity to invest in real estate, don’t miss the chance. As time goes by, the value of the property will continue to increase and you will make a substantial amount if you resell. You can also lease out the property on a monthly or yearly pay depending the time you will develop or resell it.
Real Estate Investment as A High Risk.
Every investment has its own risk but compared to others real estate risk is relatively low. It is a form of investment guarantee returns because landed property is appreciative in nature. Unless there is an issue during the property acquisition process such as incomplete documents or government policy that leads to loss of the property, it is the best choice of investment.
It is important for real estate investors to do due diligence of acquiring the right information and follow the right procedure during the land acquisition process.
Property Inspection Is Not Compulsory
It is best to get a real estate investment agent to check out the property you want to invest in and write up an inspection report. The inspection report is a summary that reports state of property and issues related to it.
You can also book an inspection with your real estate agent. This way you see firsthand everything about the property including its condition and environment. At the end of the inspection, you will be able to determine if the property is worth your investment.
You Can Get All The Information You Need About A Property Online
Although there are online tools that can be used to research and get information about properties. It is not advisable to be overly dependent on these tools for all the information you need about property investment.
Some might not have accurate or updated information about the property, the property might not even be available for acquisition. And it is easy to fall victim to property fraud if you only rely on this to get information.
It is best to employ the service of a trusted and reliable real estate agent to obtain all necessary information about the property. You can also meet up with the property owner and obtain first-hand information from them.
Conclusion
There are so many myths about real estate, some even cause fear for intending investors. However, to avoid being a captive of these myths, you should seek whatever information you need from the right source.
If you intend to invest in real estate, do not listen to ‘naysayers’, consult real estate agents who can investigate and provide you with the right report. It is not enough to do little findings and get confused, you should be thorough with your investigation.