Avoid the Five Worst Real Estate Mistakes
Real estate investment is fun, intriguing, and can be quite lucrative. However, do not assume you will become a millionaire overnight just because you watched an inspirational episode of The Property Brothers.
Purchasing a property takes research, patience, and guidance to be a successful venture. There are many nuances affecting each unique situation. Here is the Miami Herald's list of the five worst real estate mistakes you can make:
- Not understanding creative finance or adjustable loan rate. By not knowing the limits of your loan payments, you could stand to lose thousands of dollars.
- Forgetting real estate investment in property is highly illiquid. Real estate investment isn't the same as playing the stock market. Unlike buying and selling stocks within a few moments, purchasing a property is a time-consuming process where the stakes are high.
- Ignoring downside of REIT. Remember the dividend payment and value of your REIT investment can go up and down. Be prepared for market fluctuations.
- Believing that flipping houses is a fast way to make money. There's more going into the investment process than you see on HGTV. Research and prepare yourself for this journey.
- Underestimating your costs. We recommend overestimating when creating your budget. Be prepared for closing costs, fees, commissions, insurance, repairs, maintenance, and carrying costs.
For more information on avoiding real estate investment mistakes, read the entire Miami Herald article here: https://ow.ly/NIzA30avUd9
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