You must have heard a lot of people telling what to do when you are investing in real estate. However, people fail to mention what not to do. It is this part that is of utmost importance for Ottawa real estate investors. If you are an investor, you might not be very happy with your current portfolio with the falling market prices. If you want to continue to succeed you have to avoid the mistakes you have already made in the past and also avoid any other mistakes that you can make in the future.
The most common mistake that many investors make is that
they are not focused on their investment plan. Either investors do not have a
plan or they are easily distracted from the plan when they see new lucrative
deals. If you stick to a thought out investment plan that is based on
fundamental real estate principles, you will make more money and you will also
minimize any risks your investment can face.
Ideally every investor would like to buy property that will
grow in value over time; the rental income of the property will exceed the
expenses and the equity will continue to grow with tenants paying for your
mortgage. If you are buying property just because its value will increase over
time, you are taking a huge risk which will most probably result in losses.
Your focus should be properties that will generate enough income that you can
take care of all expenses related to it and you are able save some profit.
Do not forget to measure all risks and rewards. People are
always worried about return on investment. They should also consider the return
on risk or return on time. Time is the most precious resource for an investor.
The money lost can be regained in some way or the other, but the time lost on a
particular investment can never be regained. You should always weigh the risks
against the return that an investment is offering. Most investment
opportunities that offer big returns come with big risks. If you are not able
to manage the risks, you might end up draining your funds.
Another mistake that many real estate investors make is that
they try to make the investments on their own. It might seem that you have all
the information available on the internet and you can work out the deal on your
own, but in reality this is not true. If you think that you are getting good
return on your investments and you have managed to take care of them well
without involving a real estate agent you are wrong. A real estate agent will
help you manage your portfolio and will let you know of all the risks that are
involved with your investment.
As a real estate investor it is very important to ensure
that you avoid these mistakes. Contact your local Ottawa real estate agent
today and save your investments while you still can!
Visit www.bennettpros.com for all your real estate needs.
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