When it comes to all the investment options that are available in the world today, the real estate industry is one that buyers tend to feel the most attached towards making the best decisions at the right time. People usually have the issue of containing their emotions and can make the wrong decision depending on their mood during that period of time which can actually help the many fables that are believed within investing into the real estate industry.
If you are looking forward to investing into real estate then you should try your best to leave your feelings at the door because the industry will not suffer when you make any hasty or rash decisions. Here are some of the many common fables among the industry so you won’t be surprised when you hear them yourself.
THERE IS LIMITED AMOUNT OF LAND
The most common fabricated story among the industry for most agents to finish a deal would be that land is scarce and you must make the most of the opportunity when you have the chance. However, it is true that there is a limited amount of land but fortunately for you, the human race still hasn’t fully taken over every corner of the world but with the advances and developments through technology, there are more properties out there more than you ever imagine just being in the market that are available for rentals or purchase now.
PRICES FOR RAW LAND WILL ALWAYS RAISE IN VALUE
This fable is the most common one to be believed by gullible buyers within the market that are looking for the most profit possible but haven’t made the right research background to follow through with this information to understand that it isn’t always true. The false rumor has moved through the market due to the fact that in the past two decades, the price for land has increased an incredible amount but that also depends on the location as well as the buyers in the market and the status of the economy.
REAL ESTATE INVESTMENT CAN BE EASILY FLIPPED AND PROFITABLE
This is not one of the most very well-known fables but it is definitely heard among the agents in the market. People would love to believe what they see on television such as the dream story that happened of the multi-millionaire that was self-made in the real estate industry who has decided to gain their fortune just by buying and reselling property, little do they tell you the experience gained and knowledge that this person has because such decisions are obviously not made by luck. You should try to remember that luck is only granted to those who are prepared to have it. It is obviously not as easy as purchasing a property and redesigning it and having to sell it for a straight profit without putting into consideration the transaction costs and the time spent trying to find the right buyer and negotiating the best deal for both parties.
BUYING IS BETTER THAN RENTING
Most property owners all over the world have some kind of sentimental value towards their location so when they have someone renting their property, they can become emotional. Most people would make the assumption that buying is better than renting but that really depends on the budget that you have the career that provides for it. If you have enough capital to purchase a small apartment but you would rather pay rent for a luxurious home, then you are making the wrong move and wasting money for someone else to probably pay off their mortgage rather than having your own place and paying almost half less the same amount of rent money towards payments and utility bills. This fable depends on each case because if you don’t have enough money to obtain a household of your own then obviously you would rent and try your best to save on the side to be able to afford the house that you would like to purchase in the end.
ALL YOU NEED IS THE DOWN PAYMENT
For all those real estate agents that convince you that you need the down payment to purchase a home then you are sadly mistaken because that is far from the truth from shopping for properties with no savings to afford it. You are guaranteed to look forward to more payments in the future towards obtaining your new home such as improvements that can be made, moving expenses and repairs. Try to have a savings account in the case that you get accepted for the down payment that you are able to pay for any sudden problems that might happen or having to pay the rest of payment for your household down the line.
VACATION HOMES ARE A HUGE WASTE OF MONEY
This is one of those lies that have been told among the people investing their time and money within the real estate industry whether you are an experienced homeowner or a fresh homebuyer new to the market, having a vacation home is definitely not a waste of money. It just takes a different state of mind of owning a vacation home rather than the usual residence that one might acquire. For your information, vacation homes are located in popular areas that can be often rented out even on a daily basis for tourists under their own rates meaning that can assist you to pay off your mortgage payments while others are vacationing in your household. Rather than looking at your property as a place of residence, try to consider it a business if you aren’t using it for personal use for yourself or your beloved friends and family. If you consider buying a vacation home, look forward to creating a side budget that would factor in all the payments towards a real estate agency that can find you clients, housekeeping to help you tidy and keep the property clean at all time during the year and proper furnishing every once in awhile to attract new tenants and not have your property stuck on the market for rather small reasons that can be fixed without a thought. Last but not least, you can always treat your vacation home as a vacation home and save all your vacations during the year towards other expenses or possibly another investment towards the industry of real estate.
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