Canadian real estate is highly competitive. There is no shortage of companies, individuals, and groups that are heavily invested in the market. One of the reasons for this is that many people think that getting into the real estate industry is easy. They watch television shows that are based on flipping properties, real estate investing, and buying and selling homes that make it seem simple.
The truth is that to be successful in the real estate business you have to do your homework. You need to not only have the knowledge of the industry, you also need to understand your local market and keep up to date with the latest real estate investing and industry trends.
Therefore, before anyone decides to become an investor in the real estate market, there are a number of common mistakes that they need to avoid if they want to be successful:
- Understand all real estate costs: One of the biggest errors made my many rookie real estate investors in not fully understanding all of the costs associated with closing a deal. Costs associated with closing, maintenance, and repairs must be part of the equation.
- Not having a plan: Too many new investors enter the marketing without a plan. Know what you want to invest in and establish a guideline for your investments.
- Being a landlord is not a passive job: Too many people assume that they can sit back and collect rent payments once they purchase a property. Not only will there be maintenance work to do throughout the year, but you should also have concerns about finding the right tenants to rent the place.
- Cheap deals are not always good ones: When a good deal is presented, always make sure that you put in the required time and effort to ensure there are no variables you forget to consider in the deal such as work to be done on the house and the neighborhood.
- Understand your legal obligations as a landlord: Make sure you are well versed in the laws associated with the landlord/tenant relationship in your area or consider hiring a property manager to handle your properties. While it will cost more money, it will give you some peace of mind.
Real estate investing mistakes will happen. It is part of the process of becoming a successful investor. However, if you follow these real estate investment tips, you will give yourself a better chance to succeed in this competitive market.