4 common mistakes in real estate investment

Buying in a too narrow market

A narrow market is characterised by a small number of players and low demand. Classic examples are countryside or poor areas. Due to poverty or low demand, you run the risk of not being able to rent or sell the property – avoid these narrow markets.

Not planning ahead for you

A property is a long-term investment. That is why it is so important that you have clarified in advance what your future should look like. Do you want family? Are you satisfied with your job? Ask yourself this question before you invest in real estate.

Not focusing on reselling

If you want to invest in real estate, pay attention to its later resale when buying the property. Follow the taste of the market and avoid short-lived design trends.

Too high repayment rate

Arrange as little repayment as possible! Background: Whatever you contractually agree, you must always adhere to. If you then get into financial difficulties and are unable to pay the agreed repayment rate, you are in breach of contract. Don’t commit yourself to an excessively high repayment. Agree with the bank rather 5 percent unscheduled repayment in the year! If, for example, the bank wants 2% repayment, but you could pay 5%, then you put the 3% difference aside. You transfer this to the bank at the end of the year as an unscheduled repayment. Then you have an advantage: it is a voluntary unscheduled repayment, but no contractual obligation.