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4 mistakes every real estate investor makes which you can avoid

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The real estate industry is very lucrative only if it is done properly. It is possible to become rich in the market but it won’t be easy. Most real estate investors make certain mistakes that result in losses. Avoiding the following mistakes can help you make money in the real estate industry.

1. Overpaying

One of the biggest mistakes most first-time real estate investors do, is paying too much on a property. The essence of any investment is buying at a low price and selling at a higher price. Therefore, you will only make money in the real estate industry if you get a property at a good price. However, if you buy a property at a higher price, your investment on return will be significantly affected because the property will appreciate very little. In some cases, you might even make a loss

2. Lack of a good understanding of the market

This is another major mistake most real estate investors make. Understanding the market means more than just knowing the neighbourhood. You have to understand the underlying demand of the particular market you intend to invest in.

For instance, if you like investing in the off plan property in Dubai, you will not be successful if you don’t understand the market. If you want to resell, who are the potential buyers?  You should understand what the potential buyers are looking for.

The off-plan market is one of the latest trends in the Dubai real estate industry. Some of the top developers are getting involved in the off-plan market. For example, there are several Meraas off plan projects in Dubai such as Sur la Mer townhouses. If you are interested in completed projects, there is a rich selection of apartments for sale in Palm Jumeirah where you can invest and expect a high ROI.

3. Failure to do Due diligence

Before you put your money on any property, you must be willing to go an extra mile to perform due diligence. The failure to research on the property, the neighbourhood and the market in general is an intolerable error that may cause loses. However, it is a mistake most real estate investors make and they end up stuck with a property that is a money loser.

4. Lack of strategy

Having a transactional view of the real estate is another mistake some investors make. Like any other type of investment, you need to create a plan and stick by it. If you don’t have a viable investment plan, you might make a mistake of buying the wrong property just because you were offered a good deal.

City View or Sea View: Which is better?

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While some people prefer to live within the city, others like to live by the seaside. Each option has its own advantages and disadvantages and the choice will depend on several factors. For instance, city lifestyle is more active and fast-paced. On the other hand, the seaside is less populated with a variety of water activities.

Advantages of living in the city

  • Opportunities

Most cities are vibrant and offer a wealth of opportunities for the residents. Even though the job market is competitive, there is a wide variety of opportunities. This one of the main reasons why most people prefer to migrate to cities.

  • Convenience

The convenience of city life is another reason most people prefer to live in cities. Almost everything can be accessed via public transport, a short drive or even walking. All the basic amenities and facilities such as banks, grocery stores, hospitals, etc. are located within reach. One such example is the Downtown Dubai area. There are a lot of apartments for sale in Downtown Dubai that are located in walking distance to public transportation and basic amenities.

  • Efficient transportation

One of the most significant benefits of living in the city is an efficient transportation system.  Train, buses and taxis are some of the efficient and cost effective methods of getting around the city. Also, most cities are bike friendly and therefore residents can cycle to their destinations easily.

Disadvantages of living in the city

  • Cost of living

Even though people living in the city can easily access most of the facilities they need, the cost of living is higher. Rent and other utilities tend to be high in cities than in other regions.

Advantages of living by the seaside

  • Ample recreational activities

Water activities are great for your physical and mental health. Those that live by the seaside, such as in the Emaar Dubai Creek Harbour neighbourhood or the Meraas Bluewaters Residences, enjoy easy access to activities like sunbathing, surfing, swimming, sailing, kayaking and more.

  • Soothing sea breezes

Apart from relaxation, research has shown that sea air can reduce symptoms of asthma. The sea air contains iodine; salt and other minerals that promote respiratory health improve allergies and skin problems and stimulate the immune system.

Disadvantages of living by the seaside

  • Costly insurance

Seaside property owners can expect the additional expense of specialty insurance to cover risks such as floods.

  • Salt damage

If you plan to live by the seaside, you should expect to see some damages on the exterior of your property due to exposure to sea salt.

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We left our home in Sydney, Australia many moons ago in May 2012 and, other than a brief stint back in Perth for Christmas and a wedding in early 2014, we have been travelling the world nomadically ever since, running a business from our laptops and we’re here to show you how to do it!