A good preparation for Real Estate
Four things to avoid
Real estate investment is a sensitive area: many people try to venture without adequate preparation or underestimate the issue, thus exposing themselves to enormous risks. Such as losing a good part of the capital invested.
Also for this reason, the site Forbes.com has drawn up a list of the most likely reasons why a real estate investment may not make what was hoped: we have selected the four most interesting.
1. Not having clear objectives
In the first place there is the lack of pre-established objectives: to define a target takes time, and this must be as clear and specific as possible. What kind of property am I looking for? In which neighbourhood? What are the price ranges and conditions I am looking for? It must also be a measurable objective: how much do I want to earn in percentage from now to one year? And from now to five years? Finally, it must be clear what the purpose of the entire operation is: to retire, to pay the university to the children or to get a real new salary?
2. Short time to decide
The second reason is the short time available: investing in real estate is a real business, and as such it needs time to be developed. Time that can also be used to acquire adequate managerial skills, an aspect that occupies the third position in the list of Forbes.
3. Low managerial skills
It should always be borne in mind that the purchase of a property is only the beginning of the race, not the end. To manage everything that comes after you have to become good managers, without improvisation.
4. Look at the finger and not at the moon
Fourth point: inability to observe the general context. If you buy a property, try to do so in an area where the population is growing, as it is assumed that so will the demand for houses. This is just one example, but it helps to understand how important it is in the world of real estate investment to analyse the overall picture.