Some people make mistakes in many things and lose their money. It doesn’t matter if it’s business, crypto, or losing money when buying property. They invested in something and then lost their money.
I have been hearing a lot of people complaining that they lose thier money on real estate investment. So that’s why I decided to make some research and find out the kind of mistake that lead to excess lost of money in real estate investment
So have you ever asked yourself, What are these mistakes that investors make and lose their money?
7 Real Estate Mistake You Should Avoid
The most common real estate investment that could lead to lost of money are;
1. Investing Ignorantly
What we call ignorant investment is when they provide you with a proof of what you purchase but you don’t know anything about the proof. That’s the most reason people lose thier money.
It is much better to start with index funding if you don’t know anything about the proof they provide you.
index fund is managed by credible fund managers, and they will be investing on your behalf. Some examples of fund managers are BPI, ATRAM, etc. All you need to do is put your money in, and they’ll invest on your behalf. They’ll be the one to do some activities like timing the market and so on.
2. Impatient Investing
This happens to a lot of people. They trip and fall. Because they want to get rich quick. In real estate investment, you need to be realistic. You should be ready for a long term investment. Otherwise you will keep losing money each day.
3. Inconsistent Investing
Consistent matters a lot in whatever you’re doing. Making your investment regular is another way you can grow your money in real estate.
If you’re looking for an investment platform that’s easy, convenient, and something that you can afford, G Funds is there. You can start investing with just 50 pesos and build a consistent habit for long-term gain with a diverse set of funds to choose from depending on your risk appetite.
4. Ignoring Market Trends
In Nigeria, it’s important to pay attention to market trends before investing your money in real estate.
This market trends will now enable you to know the particular time to invest or not. Also, market trends will help you choose to right location to invest. So be sure to follow the market trends so that you wont lose any money In real estate investment.
5. Overspending On Repairs
This is another mistake some real estate investor makes. Spending a lot of money for repairs. For example the amount you bought the property was like three hundred thousand naira (300,000) and you later discover that you have make repairs Upto One hundred and fifty thousand naira which is half of the money you paid for the property.
Consider if you want to sell the property you’ll find out that you will make very little profits that is less than what you expect.
If the property you want to buy is faulty, figure out the amount you will use on repairs and bargain with the cost of the property.
6. Not Consulting Expert And Professional
Working with experts and professionals is one of the most important thing investor should take note of. Make sure you work hand to hand with these three people, lawyer, surveyor, and a real estate consultant—before you go ahead and buy a property. They will guide you on what to do.
7. Treating Your Tenant Poorly
Your tenants are your customers, so giving them a bad treat will 100% have an impact on your investment.
It’s advisable to do a proper screening before accepting any tenant. And after giving them access to your property, try your best to treat them well.