real estate investment mistakes

7 Common Mistakes to Avoid while Investing in Residential Properties

By: AIPL Marketing
On: February 2nd, 2022

Investing in real estate is possibly one of the best decisions that you can make. Real estate is growing tremendously in India and with the number of projects coming up across the country; you will get a lot of options to choose from. While most people invest in real estate to make money via leasing them, some people make it their family home. Either way, a thorough inspection of the property is a thing that you cannot miss out on. 

Often, in a hurry, people don’t inspect the property accurately, leading to risks of problems in the future. Errors are natural for humans but even the slightest error while investing in a property can cost you quite a lot of money. So, to help you out, we have curated a list of the most common investment mistakes that you need to avoid while investing in real estate. 

1. Overseeing the Budget for Your Investment

One of the most common mistakes that people do is they go overboard with the budget for investment. On the other hand, some set a very low budget with high expectations. Determining your budget is one of the most vital steps while buying a home; any slip in the budget can lead to unpleasant surprises down the road. While setting the budget, it is not just the down payment and the purchase price. Down the road, you will incur several charges like interior costs, any extra electrical line cost, removal and survey fees, and so on. Consider all the factors while setting the budget of your investment.

2. Not Considering the Growth of Family

While investing in a residential property, you must consider the current family size as well as the chances of future growth. For example, if you are buying the property to make it a family home and eventually plan on getting your parents to live with you, there should be room for any additional requirements. This is a property investment mistake that most people make; make sure that you don’t incur the same. In case of any such plans, you can always opt for a 3BHK property that comes under your budget. Ensure that along with the provision of additional space, you don’t face any difficulties in your EMIs. 

3. Falling for Online Brokers and Estimates Easily

The internet has indeed made life way easier for humankind. But don’t take the prices or estimates given on the internet too seriously. When it comes to investing in real estate, most of the listed real estate sites state the approximate value of the property. You will get to know the exact price of the property only once you visit the real estate developer. Many people set their budget based on the estimates given on the internet; however, ensure to have open ends as it will help you decide better once you visit the real estate developer and get the actual quotation. 

property investment mistakes

4. Wasting Time on Out-of-the-Budget Properties

Many times, we look at houses that are out of our budget. Online or offline, don’t waste your time looking at residential properties that are not feasible to your budget. This investment mistake is often taken lightly but this will simply delay your process and sometimes, you may end up losing the house that you loved in your budget. Real estate developers and brokers are always on the move for selling their properties and if anyone else makes a better deal and signs the paper before you do, it will be your loss entirely. Get your house approved and then maybe you can look at the out-of-the-budget properties for enthralling your eyes. 

5. Wasting Time on Out-of-the-Budget Properties

Bidding for your real estate investment is probably not the best idea. Especially, when the website or source is an unreliable one. Numerous online sites list real estate property like property for sale in Gurgaon, Amritsar etc, with approximate quotations. You can look at them to note down the property developer’s name and address but don’t buy a property online. If you are lucky, you may hit the jackpot and get the house but most times, they turn out to be a scam. Check for properties only on the official websites of the real estate developers or on the trusted aggregators but always buy the property offline. 

6. Not Inspecting the Property

This is one of the biggest real estate investment mistakes that homebuyers make. In a bid to ensure they do not lose the house; homebuyers don’t inspect the property accurately. By property, it doesn’t mean only the flat that you are buying; it means society and its neighboring area. Inspect the maintenance systems, the amenities, security of the building, the neighbouring areas, water system, etc., before you sign the deal. 

7. Overlooking the Additional Charges

Now, most real estate developers are transparent with their charges and prices. Some developers offer a few amenities like a gymnasium, swimming pool, library, etc., for free while some charge a monthly fee for that. Look for these charges in the contract and don’t shy away to clear your queries about the same. After all, it is a huge investment, and you must ensure that everything is sorted. 

Purchasing a residential property is not only big but also emotional. Make sure to do the right research, enquire about the real estate developer, their after-sale service, and so on. Also, make sure to not make these real estate investment mistakes

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