Are you looking for properties in Chennai to begin investing in real estate? Good decision! Since you are just starting out, you cannot become an expert in one night. Only with knowledge, determination, and a good network will you be able to gain a place in the market of real estate investing.
However, there are a few things that you need to consider before making your first buy. You also need to look out for a couple of classic mistakes which beginners are prone to committing in the early years of investing. Whether you are aiming to be apartment builders in Chennai or trying to invest in houses, take a look at the list of tips to avoid overpaying while investing in property.
Not having any plan
One of the worst things you can do is to buy a property in a frenzy and then decide what you want to do with it. It is almost impossible to resist this decision when there is a hot market out there. But, it is crucial for you to abstain from it. Before making the decision, build an investment strategy and figure out your plan for purchasing properties that fit in it. Any seasoned apartment builders in Chennai would suggest you a similar game plan.
Who lives in the neighbourhood?
You might be interested in a cheap plot of land that looks perfect for building your portfolio as an apartment builder in Chennai. But before making an offer, do some research- know your seller. Why is he selling? What about the neighbourhood? Is it located in a residential area? How is it connected to the rest of the city or town? Who would be your prospective buyers? Are you building your apartment for families or a rented apartment? It is important to ask such questions because it will give you the value of the property you are about to invest in.
You also need to spend time and learn about the HOA fees along with any road construction projects that are coming up. Do your research about the crime rates, quality of schools in the vicinity, tax rates, and the general cost of living. Think about it- when you are buying a new phone, you ask so many questions before buying it. Property investment is a rigorous process, so why hurry?
Another rookie mistake that real estate agents do when they start their journey as an investor in the real estate market- not being patient. You cannot benefit from buying property whenever you find them to be cheap. It will not make you a great real estate investor. If you are trying to build the foundation for becoming an eminent apartment builder in Chennai, you need to have patience. Never rush in or jump into any decision.
Overpaying for a property
The issue of overpaying is mostly tied to the research that needs to be conducted before you make a decision. We know that searching for the right property is time-consuming and frustrating. But consider this example- you are the prospective buyer, looking for flats in Mogappair. Once your needs and wants are actually met, it is natural for you to be nervous and anxious, because you don’t know whether the seller will accept your bid.
However, keep in mind that an anxious and impatient buyer is always prone to overpay while investing in real estate. It can lead you to a bunch of other problems such as taking on too much debt or accepting a rate of payments that is beyond your repayment abilities. In order to save yourself from this problem, begin doing your research that shows rates of properties recently sold in the neighbourhood. Build your connections with top real estate developers in Chennai. They would be able to share some insight into the prices.
If nothing else works, take a look at the prices of homes on the database or even the local newspaper. Unless the property has unique characteristics, it is only logical to keep your bid somewhat consistent with other homes in the neighbourhood.
Don’t do everything on your own
It is foolish for buyers to think that they can close real estate deals all by themselves. It might be that you have done that in the past. However, scenarios can change quickly if the market is taking a hit. You won’t find anyone to turn to when you are trying to fix any problem. When you are starting out, befriend people who can help you make the right decision. Any real estate investor should have a team of a good real estate agent, a good attorney, and an insurance representative.
Each of your team members is an expert in their field and hence they shall be able to point out any flaws in the property and alert you.
Not considering other expenses
Owning a property has got a lot more to do with just the mortgage payments. Any real estate investor will tell you about it. There is a lot of keeping such as repairs or making any structural changes in the house. Do not forget insurance and property tax. Make a list of the costs before settling on a price.
The bottom line is, real estate investment is not child’s play. If it was easy, anyone would have done it. However, if you are willing to go through the process, your diligence will be paying off.