4 Common Mistakes Real Estate Investors Should Avoid
Most investors strive to secure their financial well-being through real estate investment. However, some have faced huge losses despite the lucrative returns from the real estate market.
The truth is no one starts off knowing all the in and outs of the real estate market, we learn and gain knowledge with time. We have put together a list of common mistakes you can avoid when investing in the real estate market in Kenya.
- Conducting shallow research
Research. Research. Research. Before you jump in with both feet, it is important to know what you are getting yourself into. We encourage investors to know the industry and market before making a financial transaction. You can conduct research or approach an experienced real estate company such as The Wealthsmith limited to expound more on the same. Ensure you ask lots of questions and clarification on terms that may seem unclear.
2. Going in alone
Some people think they know it all and they choose to go ahead in making a real estate transaction on their own. Whether you own several plots or have gone through months of real estate investment research, the process of acquiring land alone may not go as smoothly as you expect. As an investor, you should make use of every resource available and this includes the experts in the real estate business who will help you make the right investment purchase.
3. Underestimating a location
A good example of this is the town of Nanyuki and its surrounding. Most people have categorically dismissed investing in the area due to reasons that are commonly associated with growing towns such as ongoing works on infrastructure, incomplete roads, and distance from the Capital. While these may be the facts on the ground, the beauty of developing towns is investors can secure good deals ie- an 1/8th of an acre in Nanyuki goes for Ksh. 199,000 under The Wealthsmith limited. Growing with a town gives you the opportunity for higher returns on your investment.
4. Transacting without a goal
The number one thing every person should be aware of is that there are several investment opportunities in the real estate market. Before making a real estate transaction, you should have an objective in mind. Some of the questions that you can ask yourself are: Why real estate? What developments do I want for my land? What are my long-term goals with this investment?
“Learn from the mistakes of others. You can’t live long enough to make them all yourself.” – Eleanor Roosevelt.
Mistakes can turn out to be a good thing as with each is an opportunity to learn and become a better real estate investor. Contact The Wealthsmith limited for a further conversation on real estate investment.