Every real estate investment has some ups and downs and there are plenty of mistakes that we go around. It is better to avoid costly mistakes for enjoying the real fruit of a real estate. Remember the phrase: “You may learn from your own mistakes, but it is better to learn from the mistakes of others”. Pacifica Companies in Ahmedabad provides you with the remedies to overcome some of the mistakes of real estate development, so that you can gain some knowledge while investing.
1) Buying costly or wrong location:
Sometimes you may not make any improvements or developments to a real estate property as you get stung by investing too much price for the location or with a wrong neighborhood – slammed up against the free way or next to railway tracks or a lone single family dwelling nestled in a row of commercial.
You can avoid all these problems by comparing the market value with the neighbors before investing and enquire for the draw backs of that particular real estate property. If you cannot stay in such location obviously the buyer can’t. Remember that it is best time to think about selling while buying it. Even if you made most beautiful improvements to such properties, they cannot provide potential income to you.
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2) Not obtaining a permit:
Some people neglect for obtaining a permit because they worry about the expensive or they think that the permit is not such necessary thing. It is against the law to invest on a real estate or to perform real estate development with out a permit. While you are investing such huge amounts on a property can’t you invest up to 5 - 10 percent of it for a permit? Also the permit is a mandatory.
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3) Developing without a proper plan:
Don’t try to complete a job in less time than it is necessary. It is best to prepare a calendar for assuming how many hours or days that particular work will took to complete. This will keep you in a tight schedule and gives you a realistic time frame for finishing the job efficiently.
4) Low budgeting:
Never try to estimate roughly for your real estate development, proceed in a sequential manner. Itemize each and every material including scrap in your estimates. Also include mundane items as the cost of nails, staples, fiber glass tapes and so on. Then account for at least 15 percent of your estimation for material wastage. Hence, add it. Add another 30 percent as the prices are increasing day by day. Of course, you won’t buy all the material at once.
5) Handling unqualified jobs:
Never dare to handle unqualified jobs. If the necessity comes, think twice before handling and try to learn that job from starting till its end. Don’t interfere with a middle level knowledge. Some projects require more than one person. There is no benefit of saving a rupee from a huge amount. Let the concerned professional handle the project.
6) Underestimating the Resale Value:
Some people say that they can sell a house for two or three times more than the cost of improvements along with its acquisition price. But this assumption does not work all the time. A clever person will estimate the resale value by comparing with the similar real estate property within that location to determine whether the developments or improvements made to a real estate property can provide the targeted income or not. You are not needed to over improve your property by implementing more facilities which are not available in that area. May be this over improvement cannot yield excess income. It depends on the area.