5 Factors That Should Not Drive Your Home Investment Plan
Buying a home is a lifetime decision. Overwhelmed with the idea of owning a home and seeing the profits multiplying, many people invest a major portion of their savings in the real estate market. But, you should be mindful of the real estate market dynamics before putting your hard-earned money in any deal.
MakaanIQ tells why these five factors should not drive your home investment plans.
It is true that home investment decisions are at-times emotionally charged but one should not let the heart rule over head. It's a financial decision which must be driven by proper planning and foresight. One wrong decision can wreak havoc with your life's investment plan.
It is advisable not to get emotional over a particular home or property to avoid regrets at a later stage.
Be your own master and decide accordingly. Your decision should be independent of what your close friend has done or what your sibling plans to do. Your needs and financial status is different, so should be your choice.
Expecting higher returns
Real estate investments require a great deal of patience and understanding. Assuming that just by investing in real estate, you can earn a quick buck is like stretching your luck too far.
Real estate investment is a good long-term investment option, provided you understand that it involves risk and market fluctuations.
You may have different reasons to invest in a new home. It could be living in a tony locality, proximity to workplace, relocating from a city, etc. When you plan your home investment decision, just make a mental note of the goals you want to achieve through the investment. If you don't know what you want, then it better to protract the decision.
If your friend, neighbour or an acquaintance had a windfall gain through an investment, you have to understand that lady luck had bestowed him. You decision should not be based on what others do, it may land you in red.