It’s something which you’ll spend hundreds of thousands of dollars on, so to put it bluntly any mistake is probably going to hit you in the pocket pretty significantly.
Unfortunately, with the internet growing at a ludicrous rate, it means that more and more untruths about real estate are being published. To the average user, it’s becoming harder than ever before to filter the good from the bad and conclude what advice to take.
Of course, this is the same for every industry. It’s just that when it comes to real estate – the consequences tend to be a little more costly. This is one of the reasons why Brian Ferdinand and other industry experts tend to be very highly sought – people know that their advice works, and isn’t going to cost them money in mistakes.
We’ll now have a look at some of the most costly real estate myths that blight the market and show how you can protect yourself.
You should make your decisions based on the market condition
Let’s firstly put out something of a disclaimer; the market does dictate how you invest, but there are plenty of other factors to take into account.
A lot of first-time investors might feel rushed into entering the market, just because it’s favorable at the time. Instead of this, they should base their investing decision on whether or not their finances allow it.
In other words, while a bad market might rightly dissuade some people from investing, don’t automatically think it’s your time to invest when the market turns on its head. See what you can afford first.
You are always guaranteed a profit with real estate
While this might seem to be the case with some investors, you shouldn’t take it as gospel. The reason this myth exists is because over time, property prices will increase. Sure, they might fluctuate for a few years, but in the long-term they will appreciate in value.
However, it’s this last part of the sentence that you have to be particularly wary of. While we’re nowhere near this stage yet, when a market becomes saturated prices won’t rise anymore. This is unlikely happen, on a global scale at least, for a very long time. In certain geographical areas, it’s something to keep in mind though.
You have more chance of success if you stick with a big name developer
It doesn’t matter if you’re buying a pair of trainers or investing in property, the big name brands always seem more attractive. However, particularly in property, this isn’t always going to present you with the best value.
While it might appear “safer” to invest in a company with years of experience in the bag, there are still countless examples of these suffering problems and not necessarily delivering on time. Sure, these same problems might occur with a small developer as well – but you should at least consider all developers and then opt for the one which provides the best overall value (forgetting about the name attached to them).