Top 10 Real Estate Investment

Mistakes on Debut

With mass participation from the young

professionals of the city, the Real Estate market of

Chennai has seen a boom in the last decade. But

investment is not as easy or safe as it seems from

the outlook.

Penciling out your deal

Write down & calculate; A negative cash flow

property will only offer you a measly return

on investment- that will hardly cover your

property maintenance expenses.

Wrong estimation

Overestimating Returns &

Underestimating the cost; Lack of

Chennai Real Estate Market

knowledge.

Wrong renovation approximation

Take advice from an experienced investor; Be

more than a little bit conservative in your

renovation budget estimation.

Undermining renovation time

Have a realistic perception;

Thinking of the words ‘that much’

It is best to be prepared for such a situation;

Expectations taints the realistic view of the

transaction but awareness can sometimes

overshoot, if necessary.

Thinking it’s a ‘turn-key’ deal

Without contribution from the investors’ part

it is never going to happen.

Flipping properties

Flipping is a good option only when the

market in on the rise; Do your homework, get

detailed knowledge about the present Real

Estate market conditions in Chennai.

Comparing to stocks

Unlike stocks, where you look to your bank

statements every few months, you need to

deal with bigger issues right away in this

kind of investment.

Assuming it as a low risk sector

Risk is a factor associated with all kinds of

investments. It depends on how accurately

you analyze the market conditions.

Taking someone for his words

Skepticism and Analysis are the main tools

towards getting the best of everything and

everyone.

These are the ten commonly recurring

mistakes a novice real estate investor in

Chennai is most likely to make; Avoid them

from now on. Do not make any assumptions;

just go by the facts and figures as they are.

Medavakkam | Perumbakkam | Vengaivasal

www.sumangalihomes.in