First-time real estate investors tend to make a few mistakes – but it doesn’t have to be that way. | Photo from Unsplash
Investing in luxury real estate is equal parts exciting, rewarding, and for some: nerve-wracking. You want every penny you put on the table to be worthwhile. No one likes to go through the horrors of plunking down cash on a weak real estate investment or worse, on a project going bust. But don’t get spooked, you can avoid these terrifying circumstances by planning ahead and by learning from the common real estate investment mistakes in the industry.
Don’t Get Spooked – Avoid These Common Real Estate Investment Horror Stories Mistakes and Pitfalls
Brittany Salesforce, the central sales and marketing arm of Brittany Corporation have worked with many types of high-profile investors over the years. Through this extensive experience, Brittany Salesforce rounds up the classic and avoidable real estate investment mistakes all homebuyers and investors should learn from.
REAL ESTATE INVESTMENT MISTAKE 1: INVESTING WITHOUT CLEAR PLANS & GOALS
One of the most common real estate investment mistakes out there is being unprepared. Taking the leap is great – but not without a proper plan. There is a huge difference between making your big purchase unprepared and starting with clear goals and smart preparation. You should always have a plan, and the first step is identifying your long-term goals. For example, what is the main purpose of your purchase? Is it for personal use or business purposes? Others buy a luxury property to reside in with their families. Others are looking for a great place for retirement or vacation destination. There are also those who buy luxury homes or luxury lots and develop them for business (i.e. putting a luxury condo for lease). In other words, figure out whether you want to be a personal homeowner or a landlord.
Another tangent to think about is the financing options. | Photo from xxx via Unsplash
For your financing options, a one-time payment is the most convenient choice. You do not have to worry about monthly mortgages or wait long for the ownership of the luxury property to be transferred to you. If you are planning to purchase multiple luxury homes or luxury lots and you want to spread out the cost, consider applying for in-house financing or deferred cash. The good thing is Brittany offers many flexible payment options that you can use depending on your goals and preferences. Figure out your specific goals so you can easily narrow down your options and make smart decisions. Ahead is a roundup of some of the essential questions to ask yourself before making your big purchase.
1. What are my goals for this investment? (I.e. for resale, rental, or personal use.)
2. If I am buying a luxury house to resell or lease, how much cash flow do I want from it?
3. How many luxury properties do I plan to buy?
4. Will this investment meet my goal?
5. Do I have enough knowledge of what I am investing in?
6. How much am I capable and willing to invest in luxury real estate and what is the best option to finance my purchase?
7. How will the purchase affect your cash flow presently and in the long run?
8. Will this investment meet my goal?
REAL ESTATE INVESTMENT MISTAKE 2: NOT KNOWING YOUR REAL ESTATE INVESTMENTS OPTIONS
Once you made up your mind and got clear on your goals, continue your research by finding the right properties that fit said goals. Most people automatically think of luxury ready-for-occupancy homes when it comes to real estate investment. But real estate offers several investment options you can choose from, depending on your objectives. Brittany offers two major choices – residential luxury real estate and land real estate.
Residential real estate refers to housing properties. Think of luxury condo, luxury house and lot, townhouses, apartments, and mansions in the Philippines. A luxury condo is ideal for solo dwellers, tourists, or investors who want to lease it back to a tenant. Meanwhile, a bigger residential real estate property like a luxury house and lot fits those who are starting to build or already have a bigger household.
Here are some of the upscale real estate options offered by Brittany.
The beautiful luxury condos of Crosswinds Tagaytay
The sophisticated charm of Elliot luxury house and lot at Brittany Sta. Rosa.
Meanwhile, land real estate refers to raw lots – either developed or undeveloped. These include vacant luxury lots, ranches, and farms. Many investors are interested in these properties because of their flexibility. Owners can be free to build the property or home they want on the vacant land, so long as it complies with local real estate laws. Luxury lots also cost less than luxury ready-for-occupancy homes.
Brittany is proud to offer Lausanne at Crosswinds – a picturesque luxury lot in Tagaytay.
REAL ESTATE INVESTMENT MISTAKE 3: OVERLOOKING THE LOCATION OF THE LUXURY HOME YOU WANT TO BUY
Choosing the wrong location for your real estate investment is nothing less of a horror story. Imagine getting one of themost beautiful mansions in the Philippines only to deal with noise pollution, or worse, flooding later on. Location is king when choosing your real estate investment because it shapes many aspects of your homeownership. These include the appreciation or value of your luxury home, safety, accessibility, the neighborhood you will belong to, and many more.
Urban properties are ideal for city-dwellers because of their proximity to business districts. This is also one of the main reasons why urban properties have higher appreciation than suburban homes. But if you are looking for vacation houses or peaceful living space, consider reviewing luxury homes outside the Metro. As urban properties are situated in busy cities, it’s inevitable that you would be dealing with the city’s daily hustle and bustle – noise, crowd, traffic, and air pollution. Most suburban houses, on the other hand, are located within green spaces and vacation spots, thus offering fresh air, relaxing environs, and less congestion. Most of these properties are also located near beautiful recreational spots, which are perfect for those who are looking for a place to be after retirement.
But whether you are investing in a luxury property inside or outside the city, you should always check if the location you are eyeing is not in the flood-prone areas or problematic environment. Here are some important assessment points in choosing the location of a luxury condo or a luxury houseand lot investment.
8 MORE KEY QUESTIONS:
1. Should I invest inside or outside my town?
2. Is the luxury property I want accessible? How far is it from the main roads?
3. Is the luxury property near commercial districts?
4. Will there be major long-term construction planned in the area?
5. Is the luxury property near local amenities?
6. Is the luxury property located in a flood-free zone?
7. How near or far is the luxury property from schools, hospitals, churches, and similar establishments?
8. How is the air quality in the area and is the place located near green spaces?
REAL ESTATE INVESTMENT MISTAKE 4: NOT CHECKING THE PROPERTY BUILDER’S REPUTATION
When it comes to real estate investing, reputation matters in more ways than one. Choosing a legal and established real estate developer ensures not only the authenticity of your investment but also the quality of the property you are planning to buy. Top home developers like Brittany, a subsidiary of the real estate giant Visa Land, have the expertise in planning, constructing, and developing a luxury property. They comply with legal requirements and work with a top-notch team of architects, suppliers, construction companies, and customer service professionals. Meaning, you will likely get an outstanding property to invest in and a smooth buying transaction to boot.
Financial security is also on the table. There is no greater horror story for a homebuyer or a real estate investor than an abandoned project. That means a huge amount of money is thrown down the drain. Reputed developers like Brittany practices transparency, reliability, and consistency, which translate to on-time completion of projects with zero hidden costs. One more thing – luxury homes built by popular developers can increase the value or appreciation of your investment. This guarantees a good profit for you if you decide to sell or rent out your luxury property later on.
Teamwork makes the dream work – even in real estate investment
Many investors think they can do everything on their own, only to get overwhelmed with a lot of paperwork, market analysis, tax-related concerns, and other steps in the process. It is best to consult with real estate professionals to guide you in every step of the investment process. For instance, a good real estate agent will help you find the best luxury homes to choose from; experienced mortgage brokers can walk you through the best financing option for your purchase. Investing in real estate is a team sport. Surround yourself with a great team of experts.
Brittany Salesforce Tip: If you are planning to rent out your luxury property, discuss your plans with a trusted property manager. They have the expertise to handle the whole process, from finding great tenants to maximizing the property’s rental income.
Brittany Salesforce is Here to Help – All Year Round
Ready to grow your luxury property portfolio? You can easily connect with the trusted professionals of the Brittany Salesforce by clicking here.
Visit Brittany’s official property page to know more about Brittany’s beautiful thematic offerings or follow us on ourLinkedin,Facebook,Twitter, andInstagram accounts!
For those who are interested to be a seller for Brittany, visit our E-Suite seller’s portalhere.