Debunking the Top 4 Myths about Real Estate
by Arina Smith Real Estate 14 June 2018
Many times, it’s difficult to really know about something until you start doing it yourself. This is often the case in real estate. There are countless myths and misconceptions about the property industry which can deceive the general public. When this happens, then you can easily begin investing in real estate only to fail miserably due to misinformation. Luckily, you don’t have to suffer this embarrassment since we are here to debunk the top myths about real estate. This will help you to make an informed decision about your next property investment. So, here are the most common myths about real estate:
1. You must follow the conventional route in order to succeed:
According to data from the National Association of Realtors, 5.51 million existing homes were sold in 2017. Thus, when people hear the term real estate, they often think of the residential property market. However, did you know that there are many other options for you to choose from? You can choose to engage in commercial real estate, house flipping, construction projects and so much more! By widening your scope, then you are able to explore the different sectors and thereby develop your own niche.
When asking different people, each will have their version of real estate investment strategies to consider. Take some wisdom from them and devise a plan that suits the situation instead of using a conventional route. After all, an investment is a personal choice, so the person choosing to invest should be the one to decide how to achieve success.
2. You don’t need any training or mentorship:
This is another very misleading notion that people often believe. Like any new business project, real estate investment requires a high level of skill and knowledge. If you have never delved into real estate before, then it can be quite challenging to navigate the new terrain. Hence, it is important for you to find a local workshop or training program that offers vital information and useful tips on how to succeed in this competitive field. Phill Grove is a good example of a real estate guru who holds excellent workshops where he trains people on how to venture into and thrive in real estate.
Having someone with years of experience to consult will ensure that the best decisions come from each deal. Before investing, understand the risks, terminology, and other information needed to make an informed choice about the property.
3. You will become a millionaire within the first week:
Many people falsely believe that the real estate industry is a get-rich-quick scheme whereby you can mint tons of money within a few weeks. Despite the fact that there are many people who have accumulated massive wealth through real estate, you need to remember that oftentimes, they have been in business for months or even years. Don’t expect to make your first million within a few days. Rather, it takes commitment, patience, and dedication in order to see tangible results. Set measurable, realistic goals for the investment and frequently reevaluate them to see where changes can improve the return on investment.
Real estate is a very lucrative business, but anyone who chooses to do so should enter it with realistic expectations. To invest in something means the person will see dividends over time, making real estate an excellent way to grow money, but it is not a get-rich-quick scheme.
4. You don’t need to have any financial discipline:
It’s surprising how many people believe that despite the fact that they have no financial self-discipline, they will somehow manage to magically transform from the moment that they begin investing in real estate. Despite the fact that real estate investment will help you to be more cautious with your money, if you don’t already have a sense of financial discipline, then it will be much harder for you to start on the right footing. For this reason, you are advised to get adequate training beforehand and learn money management skills so that when you start investing, you are able to thrive.
The Final Word
Many people look at the value of a property and see only the monetary value. It could be misleading only to have this angle from which to see the investment, as real estate provides income over an extended period and not instantly as some may think.
Get all the information, educate yourself in the process, and set your sights on a continued investment that will provide long-term financial gains.