So you’re just getting started in property investment, you’re probably preparing to buy your first property! Don’t expect to become an expert overnight. Most prospective investors rush thinking they have everything figured out. Real Estate Investing is one of the trickiest of businesses out there and there are pitfalls and traps around every turn. In fact, all it takes is one wrong move to turn a good deal into a bad one.
Here are some of the most common mistakes that many people make in property investing.
Not Having a Plan
There is a saying that goes ‘Failing to make a plan is planning to fail’. The last thing you want to do is purchase property and then decide afterward what you want to do with it. We understand that when there’s a hot market, it can be hard to resist the buying frenzy so it’s important that you do.
Skipping on the due diligence
Now real estate is the single most important decision a human being will ever have to make! More important than marriage so the due diligence that goes in purchasing a house especially in Kampala should be more meticulous. Ask a lot of questions about the property, inquire about the area in which it is located, and find out if the property is located in a flood zone or in a problematic area.
Knowing your Market
The biggest mistake most rookie property investors make that you should avoid is forgetting your local market. That means drilling down on land values, home values, and levels of inventory, supply and demand issues, and many more others. It is also very important to note that your local market trend changes with each unique sale made.
Using any Contractor
The best contractor isn’t always the most expensive option or the least expensive one for that matter. You need to ask a lot of hard questions while contracting a contractor. It will be very vital to require their licenses, references and previous projects. You should treat this process like the gospel.
Every landlord or homeowner can tell you that there is more to investing in real estate than just making the mortgage payment or final instalment. There are costs associated with legal fees, stamp duties, service charges, property taxes and insurances leave alone the maintenance and management costs.
The other thing you don’t want to do is get attached to the property and forget the main objective of buying in the first place! It’s investing by the way. You need to understand that before you do anything, you need to have a lead generation system in place. Manner will not just fall from heaven. The biggest part about property investing is lead generation. The more the leads, the merrier and it all goes back to planning.
The Bottom Line
In truth if real estate investing was easy, everyone would be doing it. All the above can be avoided and if you are seeking to make a foray into the real estate market or intend to buy a house in Kampala or In Nairobi, our experienced real estate executives at Saif Real Estate will guide you through every step of the way to ensure you make the perfect investment decision. So don’t hesitate to talk to us today!