Why Being A Real Estate Investor Is Not An Easy Job
The glorious success stories of those who made their grade through real estate inspire you. You, too, are tempted to cash in on the grand opportunities real estate as an asset class has to offer. And then you think — how difficult can it be, anyway, if you have the money to spare? The answer is it might not be as easy a job as you might have taken it to be. The stakes in real estate investments are high and need your utmost attention and care to bear fruit.
Here are three major requirements for being a successful real estate investor:
You have to stay composed at all times
Real estate investments are not meant for those who lose their composure quickly. While the rise and fall are not as prominent as in case of stocks, property prices are not immune to changes in market conditions. Property prices in India, for instance, have largely remained range-bound in the past three years. You invested in property at a time when price rise was at its peak, and a stability is going to adversely hit your profit margins. However, any knee-jerk reaction to this situation may cause you heavy losses. In waiting, watching, evaluating and taking only a well-thought of decision lies the mantra of being a successful real estate investor.
You must keep investing in yourself
Before you entered this territory, you acquainted yourself well with the market and studied the tricks required to become a successful investor. Using that knowledge, you made your bucks in the beginning and are quite impressed with your success. However, for the success spree to continue, you will have to keep investing in yourself. Sample this. You invested in a property at a time when prices were moving upwards and a stable government was ruling the country. This government passed certain laws that are going to change the market conditions in the future. You should not only keep yourself abreast with the current developments but also invest your time in understanding the real impact of the regulations. For instance, real estate investors, who lost sleep after the Indian government rendered 86 per cent of the currency illegal on November 8 did really not have a reason to do so. The move will only improve things in the sector, experts believe.
There is no scope for shortcuts
Even if you are here for the long haul, short-term successes do act as a kick for you to stay afloat. However, if profits in the short term are made by making compromises elsewhere, it may be detrimental to your business. Think of a developer, who promises to offer buyers the best-in-class everything, but the end products turn out disappointing. Such a developer might have been able to sell off all the units in one of its projects. The next time, it will find it impossible to find takers. As a real estate investor, you have to abide by certain rules and stick to a set code of ethics. Short-changing the people who you are doing business with to gain short-term gains will only slow kill your credibility.