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Investing in real estate is one of the best ways to see your money grow over time. Real estate investments tend to be lower risk than many other forms of investments, and far easier to understand than stocks and shares.
Not only that but there is so much variety from investing in commercial real estate with McGraw Commercial to investing in a run-down residential property, fixing it up, and flipping it for profit that there is sure to be an investment to suit everyone.
So it is only natural that you may want to invest in real estate right now, but with so much property available for sale, how do you know where to put your money and which investments are probably best avoided?
To help you make the right choices below you will find some common signs that the real estate investment you're looking at may be bad news:
The person selling is being really pushy
If your broker or real estate agent, as the case may be, is being really pushy with you, they could just be using pressure selling techniques to make a sale, but it could equally be the case that they really want to offload this particular property, So, at the very least, you should take a closer look at the details before handing over any of your money.
It’s been on the market for a long time
If you're thinking of investing in a property, but it has been on the market for a long time, then you have to ask yourself why. Either it is priced too high, it’s in an area where no one is buying, or there is something up with the building itself., Again, due diligence is a really good idea.
It’s not tax-efficient
If buying a property at any particular time is likely to have a negative impact upon your taxation burden, i.e. if it will mean you need to pay more tax during that year, then it may be worth holding off and thinking about other investments that will not have the same burden.
It needs a lot of work
If you are investing in a doer-upper to hopefully sell on and make a profit one day, then you will want to look for a property that is not perfect so you can buy at the right price and actually make that profit. However, if it needs too much done to it if there are lots of structural problems, for example, it could be that it is not worth the time, money or effort required. Take some time to think carefully about what needs to be done and how much it will really cost before you even think of investing.
Spot any of these signs and you may want to reevaluate whether that investment opportunity really is a good idea! Real estate investment is a great way to make money, but only if you invest wisely and know when to turn down the wrong opportunity at the wrong time.
