They say that you learn from mistakes, but when our heritage is at stake, seeing ourselves in trouble is not an option. To avoid bad experiences in the real estate market, we have compiled the 5 most common mistakes when investing in real estate.
We know that investing in this sector gives us greater security in relation to other types of investments, however, we should not trust ourselves because, like all investments, the risks of loss of capital are present.
1.- Buy an emotional property.
Acquiring a property just because it is very close to the house where you lived when you were a child or because the price apparently is an offer that you should not miss, is a decision that appeals to the emotional, the problem with it is that sometimes we put aside make a well-structured analysis of the profitability of the place, it may happen that the house has an affordable price, but that it does not have enough demand to be inhabited, which probably translates into a minimum capital gain, if not zero.
2.- Do not look at nearby competitors.
If among your plans is to rent the house you are going to invest in, it is important to pay attention to the residential spaces that are also offered around it.
Are there a large number of houses and apartments for sale or rent? If so, we do not recommend buying a property in that area, unless it has a differential that stands out from the others, this is because when faced with a high offer of options, the property tends to decrease the rental price or last for months. without being occupied, which causes the return on investment to be delayed for a longer time.
It is necessary to do an exhaustive investigation of the houses that are offered in the area, investigate prices and based on that determine if it is really convenient to invest in those directions.
3.- Not taking into account maintenance costs and taxes.
A very common mistake that many people make when calculating the time that the return on investment (ROI) would take them, is that they forget to add to the equation the expenses that come from the property, because it is not as simple as dividing what it cost you property between what you will receive for rent to know the years it will take you to recover the investment.
Here are also variables such as taxes to be paid month after month, as well as the maintenance of the property that arises over time, expenses that, although they are not pleasant to make, should be considered to make a more detailed calculation that helps determine if a real estate investment is worth it.
4.- Do not reduce tax and real estate services.
The idea of reducing costs always sounds very tempting, and avoiding expenses for specialized agent fees in legal, tax and real estate matters seems to be a good idea.
But nothing is further from reality, first of all because a good real estate agent will always give you the best options to invest.
Since his experience in the field will help you find opportunities that you are very unlikely to find on your own and the advice of a specialist in tax matters will give you the peace of being fully compliant with the issue of taxes and payments to be made.
These two figures can also guide you with the procedures required to correctly complete the purchase of your property.
5.- Not reviewing the reputation of the real estate company and looking for new properties.
Perhaps this is the most important point of all, because if you do not pay due attention to it, you can lose your capital that cost you so much to obtain and that is the fact of making sure you invest in a real estate company that is already established and has a track record that supports its work. .
Well, unfortunately there have been cases in which companies of dubious quality have emerged that start supposed projects and do not even have the necessary permits to start building, this results in the best of cases in a postponement in the delivery of your property, or in more adverse situations the loss of your capital due to the closure of the work and hence the importance of reviewing this aspect with delicate importance.
It is a great opportunity to advise you, come to us and we will help you how you can fulfill your dream of living alone in Los Cabos, approach our real estate agents, you can do it through our email: firstname.lastname@example.org, telephone number: ( 624) 178 73 44, social networks and WhatsApp.