IN THIS POST
– Not researching
– Being around naysayers
– Reckless spending
– Not having a plan
– Short vs long term goals
Have you heard of bad habits that can sabotage your property investment? Whether you are a real estate market entrant or someone with a few years of experience under their belt, the truth is that anyone can fall victim to one or more of these toxic traits.
If you dream of becoming a successful real estate investor, here are a few things you need to avoid in order to make the most out of your investments.
Bad Habits That Can Sabotage Your Property Investment
Here are some bad habits real estate investors should avoid at all costs.
Being Lazy When It Comes to Research
This is easily one of the most notorious toxic habits to avoid for successful property investment.
Extensive background research is mandatory before acquiring a house, plot, apartment or commercial property for the purpose of investment. Even if you are working alongside a real estate agent or a partner, it is always better to check out the property in person instead of relying on someone else’s word. Visiting the property on your own will give you a clear idea about its accessibility, development status, and infrastructure.
If you are planning to sell or rent out your target property down the road, you need to do some on-the-ground research to figure out if it will appeal future buyers and renters. Although it may take some time, you should evaluate multiple properties and run a sales comparison before deciding on one.
Thanks to the advancements in technology, researching a property is now easier than ever. For instance, you can learn all about the location, facilities and property prices in top areas across Pakistan with the help of Zameen Area Guides. From housing societies in Lahore to residential schemes in Karachi as well as several other cities, these comprehensive guides present a clear picture of the amenities and infrastructure in popular areas.
To put it simply, research is one of the most important things required for successful property investment. If you show tardiness and rely solely on word-of-mouth, you may end up losing your capital.
Surrounding Yourself with Negative People
Spending too much time hanging around naysayers is bad for both your personal and professional growth. It is also one of the highly toxic habits that can sabotage your property investment.
During your real estate investment journey, you may hear a lot of people questioning your decision and doubting whether you’ve made the correct choice. They may also tell you not to invest in certain properties and make you feel anxious about taking the next step.
Unless these people are experts at property investment, you should take everything they say with a grain of salt.
Some of the tell-tale signs of these people are that they complain a lot, have a pessimistic view about everything, worry too much, tend to put a negative spin on good news, and they will always try to tell you what to do.
Listening to these people and heeding their advice is among the bad habits property investors should avoid.
Spending More than What You Can Afford
Overspending is yet another toxic behaviour that can inhibit your growth as an investor in the real estate sector in Pakistan.
More often than not, real estate market entrants end up spending much more on a property than they had initially decided. This leaves them unable to cope with the inevitable expenses that come with owning a property.
Whether you are buying a fixer-upper with plans to flip it or are purchasing in an apartment with an aim to rent it out later, you need to set a budget and make sure you don’t end up investing in something that is too expensive for you. Regardless of how tempting it may seem, do not deviate from your price range without doing proper research. Otherwise, you might actually end up losing money.
Also, it’s unwise to dip into your savings while making a big investment. If you are planning to take a loan from the bank, make sure you are only borrowing the amount you can easily pay off in the set amount of time. It’s never a good idea to solely rely on your newly acquired property, no matter how expensive, to make future payments.
This is easily one of the most common real estate investment mistakes people tend to make.
Rushing into Things without a Plan
Diving into any business, be it real estate investment or something else, without developing a proper plan of action is also one of the most toxic habits to avoid at all costs.
When it comes to property investment, you must always have a plan in place. Since buying a house or land can be really expensive, you cannot make this decision on a whim. If you don’t have a systematic plan, you may end up blowing out your budget on a property that you can’t get off your hands. Similarly, you must also have a well-defined plan for the future maintenance, upkeep and repair expenses that arise inevitably. Insurance premiums and property taxes are also some of the hidden costs of owning a home that you must be prepared for in advance.
An investment requires a carefully crafted plan along with an equally efficient backup plan, which should include every tiny detail about your price range, how much you are willing to spend on repairs, factors you are willing to overlook for a better deal, the market value and potential of the property, and most importantly, how soon will you able to make a profit off of your investment.
Of course, this won’t happen overnight and would require a lot of time and effort. Therefore, if you are one of those people who don’t like making plans in advance, you’ll need to get rid of this toxic habit. After all, having a comprehensive plan is one of the most important factors behind successful property investments.
Failing to Decipher between Short vs Long Term Goals
Last but not least, failure to differentiate between short and long term goals is also among the bad habits real estate investors should avoid.
If you want to make a profit off your property almost immediately after transferring it to your name, which translates to short term goals or investments. Basically, this term is used when you only hold an asset for the duration of one year or less. Most people buy houses and apartments with the intention to put them up for rent as soon as they are done making the necessary upgrades. This is an example of setting short term goals.
On the other hand, if you buy a plot and hold it for several years as part of a strategy for your overall portfolio, that means you are making a long term investment or have a long term goal. This term is used when you hold an asset for a duration of more than one year.
As an investor, you must learn to decipher between your short and long term goals in order to take your real estate business to the next level. Not being able to figure out your own future goals is undoubtedly one of the worst habits that can sabotage your property investment.
In case you have any questions or concerns about our guide on toxic habits to avoid for successful property investment, feel free to write to us at blog@zameen.com.
Meanwhile, here’s a beginner’s guide to buying a home in Pakistan that you might find helpful. Moreover, don’t forget to check out the top mistakes first-time homebuyers make and learn how to avoid them.
To learn more about buying and selling property, stay connected to Zameen Blog – your one-stop solution for all real estate-related matters and queries. On the other hand, if you are looking to buy property in Pakistan, you can browse through the listings at Zameen.com – the top real estate portal in the county. You can also subscribe to our newsletter on the right to stay up-to-date about the latest developments in the construction and real estate sectors.
