This article is written by Brian Malika, a Contributor Author at Startup Istanbul.
As it is said, if you have a map to where you are going then you can never be lost, maybe the worst scenario is that you may just not make it to the end destination but a least you would have known where you wanted to go.
However, if you have no map to where you want to go, then any final destination that you will land will always be your right place even if it’s not worth it. The same applies to real estate investment, if you know where to start and where you want to go beforehand while investing in real estates, then high chances are that you will make the right decisions.
But if you just take on the real estate business without a concrete investment roadmap on where to start and where you desire to reach then you might make avoidable mistakes along your real estate journey.
Since our goal is to transform you want to a smart real estate investor that knows where they are, what they are doing and their desired landing place in the real estate business we have gone out of the way to prepare the following piece of advice based on the review of our expert in the field of real estate development for quite some good amount of time .
Information on Real Estate Data Is Not What It Appears To Be
Do not believe entirely all the data that is readily available on the number of real estates establishments in the area or country that you would like to invest in. This is because many real estate owners in many parts of the world have the tendencies to hide the information regarding their existence from the necessary authorities due to the fact that they want to avoid paying taxes or simply to scare off competition.
For instance, you might read reports that claim a particular place has a low number of real estate establishments but in the real sense that might be the opposite since some scrupulous investor has manipulated such a report so as not pay more taxes. In long run, such manipulation on the number of real estates in a particular region might mislead other investors who might see the ‘lack of enough real estates ‘ in a particular region that has more people as an opportunity to invest. Eventually, real estate investors who work on fabricated reports to make investment decisions in line with this case study might experience depreciation of investment in return.
Another example might be seen when some real estate owners might manipulate reports on the housing to show that a partial region of interest has many real estate establishment (when in fact there is a shortage ) and as such, there is no need for more real estate investors to come on board. This again is usually a strategy by some scrupulous real estate owners to discourage new real estate builders from coming on board into a potentially lucrative market.
Additionally, we have incorrect reports that claim certain regions are lucrative real estate hubs because of certain existing economic factors that automatically enable tenants to pay high rent charges. Sometimes this may not be true but rather a well-calculated plan to attract unsuspecting real estate developers to come on board and develop an area only to find out later that rents don’t go as high as expected.
Therefore the best thing for all real estate developers that are eyeing new regions is to ensure that they collect as many already available public reports on the state of real estate housing in the area of interest then conduct their own private data collection of the same area of interest and lastly do a thorough comparison on every area . This exercise will expose any inconsistency in the two types of reports being analyzed and further leading to the gaining of accurate real estate data of the area of interest which will facilitate better investment decisions.
Information Is A Currency
When in business and especially in real estate business, important information becomes a currency that can inform better investment decisions and even control stiff competition. Therefore, your number one priority when considering to launch into real estate development is to figure out the right information just as it is on the ground. This may include doing your own independent research to complement what is already on the shelf.