Real estate investment can be an incredibly rewarding experience. However, it comes with its own set of risks and challenges that must be considered in order to ensure success. Unfortunately, many people make mistakes while doing real estate investment due to lack of knowledge or inexperience.
Here are the most common mistakes made by beginner real estate investors that should be avoided at all costs.
Not understanding hidden costs
Beginners tend to calculation rental returns and often forget to factor in agent commissions, property management fees, maintenance costs, rental vacation, taxes and time and energy to keep it on rent. More than 90% of real estate investors may not be able to achieve more than 3% yield on long term basis. You can eliminate that risk by choosing right unit which can be managed by team of real estate professionals. Unique Assets help to choose units which often out perform market by generating up to 7% returns.
Price doesn't matter
You heard it many times that you should buy low and sell high but we believe that investors should be concerned about quality of the unit. Units can vary within the same building and command different prices. It is often difficult to identify right unit for new investors. Unique assets help to choose right unit for our clients and could generate constant high returns up to the cost of the investment. Price doesn't really matter as long as you can generate expected returns.
No exit strategy
Real estate prices go up and sometimes they do go down. There are times when there are no buyers in market when there is time to exit the investment. There are agent fees, legal fees and taxes involved when you finally sell your unit which may significantly lower your returns. Unique Assets provides buy back guarantee on pre determined prices and eliminate all the hassle associated with exiting your investment.
Book 60 minutes no obligation free consultation to learn more about real estate investing in Thailand.