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Common Misconceptions Regarding Real Estate for First Time Buyers

 

“Don’t wait to buy real estate, buy real estate and wait.”

It is not at all uncommon to come across people whining all day long just to make sure you don’t invest in real estate. Many people are so much against the idea of real estate investments that they even come up with some fictitious stories they made up in their head. I mean, how people are dedicated towards your affairs and not minding their own business is extra ordinary in many ways as well.

Here are some of the biggest misconceptions that you will come across as soon as you ask someone amateur for some real estate investment:

You Need To Be Filthy Rich To Begin Investing

While real estate investments are indeed something that requires money to begin with, you won’t need a gazillion dollars to start investing. Your hard earned money and savings could be more than enough for you to make a down payment for some property you might be interested in.

Luck Is The Key

People often make the perception that making profits from real estate investments is not possible unless you were born under a lucky star. Luck indeed plays a small role in real estate investments for some people, but the majority makes profits via their detailed research over their investments and keeping themselves updated with the current scenario.

You Don’t Need A Realtor

This probably is the biggest misconception amongst the people who give in to the whining of others who have made bad investments. You should always remember that almost half those people made bad investments BECAUSE they thought hiring a realtor was useless. Make sure you stay apart from the crowd and don’t commit the same mistake.

All Realtors Lie

All the realtors don’t lie. While some of them might, not all of them are unprofessional. In case you are not sure whether the realtor you are about to hire is a good one or not, you can always check his reviews online or call his previous clients. In my personal opinion, if you want to take it, Slavens & Associates are the most honest realtors in business right now.

Buying And Renovating Properties Is The Way To Go

Most people have thought of buying a property and selling it quickly after renovation at least once. This however, is not a good idea. If you’ve held a property for relatively shorter periods, you might end up with lesser or no profits at all due to the transaction costs or being taxed at higher tax rates.

Choosing The Right Tenant Is Not That Important

People often assume that finding the right tenant after buying the property is not that important. Focusing on just keeping the property occupied might get you into trouble. Having a good tenant ensures that your property will be taken care of properly until you decide to sell it.

Only Larger Properties Are Worth Investing In

People often develop the misconception that smaller properties won’t help them achieve success in real estate business. This is very misleading as most of the successful real estate investors have started with less costly properties in their early days. 

People who have made bad investments under the temptations of saving big by cutting realtor costs will always point out everything wrong about real estate investments. Real estate has been and is still one of the best options for investing your hard earned money and making some profit out of it.

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