Everyone dreams about a chance to make millions, but some people actually defy all odds and make it a reality. The property market has been booming over the last few years, and a majority of people have found their luck in real estate. There are countless myths surrounding the industry though, and only those who are in the business can give you the guidance you seek. In this article, we will list five common myths about real estate.
One has to be filthy rich
One common misconception about real estate investing is that one has to have lots of cash beforehand. This is not true at all. With the increase of foreclosures, it is possible to purchase a house with little cash. Also, because newer homes are being constructed, older ones are being sold at a fraction of the usual price. Investors can purchase these houses, since they can repair them and make them more modern. By giving a house a new look you can increase its value considerably.
One can become rich overnight
Most first time investors come into the game thinking they will make cash instantly, without knowing why they believe this way. While everyone whishes they could start making money right away, property investing requires dedication and patience to make that happen. Real estate isn’t an easy career, but can give you the financial security many people dream about provided that you learn how the system works.
Location is the only consideration
A vast majority of people who hear about rental properties, but are not necessarily in the business; always say location is the most important factor to consider. This is certainly not the true. While the location of the house is important, is it not the only factor that should be taken into account. The most vital aspect of a house is the use. It doesn’t matter where the house is situated, if you can’t get the zoning that’s in the area of your intended use.
Using a realtor is a waste of cash
Another misconception is that hiring a realtor is unnecessary. This is not true. If you have ever bought or sold a house without the help of realtor, that’s great. But for new investors, the agent is invaluable. Real estate agents might even know what you are seeking before you even sign up with them. Remember to have a written agreement with your realtor if you don’ as they might suddenly end your relationship without any logical cause.
Real estate is a very risky investment
Real estate investing is not and should not be a risky investment. If you compare real estate to stocks, real estate is the best investment option as it has a high resistance to inflation. Also, you will be able to write off lots of items when it comes to paying taxes. In order to be successful in this industry, you need to have accredited professionals guiding your portfolio. These guidelines will reduce any problem that may occur.
Like any complex business, real estate has its fair share of myths. This article brings some truths that will save you from these baseless myths.