Deciding to invest in a property is perhaps one of the most challenging things, especially if you are in the late 20s or early 30s.
The property market has always been volatile, and therefore one needs to analyse different factors and market trends to avoid potential minefields.
Here, we have listed down some of the common mistakes first young property investors make unknowingly:
1. Inadequate Research and Lack of Knowledge
Understanding the property market is very crucial to avoid a poor investment choice. Thorough research about good investment locations and property type will help you avert the pitfall. In case you are unable to get proper market insights, consult an expert who will enable you to gain better market insight and make a well-informed decision.
2. Lack of Long-Term Planning
We have observed that many young people buy property without giving much thought to their future needs. Result – they often end up buying properties that have no scope of accommodating any future changes.
For example: You might buy a one-bedroom apartment which complements your present budget and lifestyle. But what happens when you start a family and want a bigger space? Take into consideration your future planning before buying a property.
3. Listening to your Heart
We understand your first house has a lot of sentimental value, but getting swayed by emotions is not a smart move! One of the biggest mistakes young people make is putting their heart over their head. Before finalising the deal, ask yourself questions like – Will this property provide returns and gains in future? Will it attract quality tenants or buyers in future?
The answers to these questions will help you buy a property that you can capitalise on and reap future benefits.