Making Profitable property purchase and owning a lifelong property these days is a big Challenge! The problem that most of the buyers are facing these days are:
- Stuck in the incompleted projects and delivery is not on time rather too late or in some cases no delivery eventually property cost becomes too high and negative cash flow makes the worst investment decision.
- If you are lucky enough to get possession of your property then are no match of promises and their delivery. sometimes Specifications, amenities, and constructions quality are not the same as they promised. Some builders or developers escalate your area and robbed your hard earn money to meet their own expectations.
- A wrong selection of Unit, Developer, Location, Amenities, connectivity, make you no capital appreciation or very little And no rental value, or less.
- If Maintenance costs are too high so you become the tenant by owning property. Getting a buyer or a tenant for high maintenance property is a big challenge.
- Because of poorly built quality, property depreciates fast and no capital appreciation even in the long term.
- One wrong selection and many Losses (a) interest loss on your paid capital (b) interest paid on borrowed capital (c) Loss of capital appreciation (d) loss of rental (e) the loss of rent that you are paying if you are staying on rent (f) Emotional Loss or harassment (g) Physical loss or harassment (h) Loss of Time and Energy
- Because of the above challenges, finding a buyer is next to impossible, vacancy ratio of the property is very high, Returns are negative, High Maintenance cost, High-Interest cost, Property cost becomes too high. Eventually, the safest Asset investment becomes our Liability.
Problem Behind the Challenge or Mistakes done by buyers
Why buyers are facing these challenges? Where the buyer makes mistakes or skips the process?
My personal observations as a consultant
- Since the property is called the safest investments so most people do not take proper professional guidance to understand the art and science behind the property investment.
- Most of the buyer’s decisions are based on assumptions rather than the fact of the project, market, and industry.
- The majority of buyers’ decisions are inspired by real family friends and relatives buying decisions or patterns which do not suit everyone’s needs and requirements.
- Mostly buying decisions are based on discounts, offers, schemes, plans, etc
- Sometimes buyer’s requirements and needs are not so deep dug so they end up buying the wrong project.
- Lack of authentic source of information which can help buyers to make a well-informed decision.
- Lack of proper research and due diligence of projects and developers.
- Not appointing professional advisors. Many buyers think there is no need for advisors but a professional advisor will safeguard your investment as well as they will help you to make fortune out of it.