3 Real Estate Mistakes – In times of high inflation and rising costs, many people see real estate as a way to protect their assets and become financially independent. Bader wants to help educate potential buyers in the best way possible and reveals three investment mistakes that should be avoided at all costs. Today, we wanted to get the 3 ultimate tips for getting started in real estate! In the Short Interview, investor and founder of Immobilien-Erfahrung.de Thorsten Bader.
Don’t do this! The top 3 real estate mistakes
In our magazine, we have already given a lot of input when it comes to the first property. For example, this XL guide: Buying your first apartment or self-disclosure for the bank. But before we get started:
What do you need to pay attention to?
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- Buying a property for your own use instead of as an investment
- Shopping without enough negotiating leeway
- Buy without accurate verification
Occupy property yourself – Error 1
Mistake 1: Buying a property for your own use instead of as an investment
Investors often make the mistake of using their first purchased property directly for their own use instead of treating it as an investment. When the property is owner-occupied, one loses the ability to finance through rental income. Instead, one must incur costs for management such as taxes, insurance and operating expenses, which increase by an average of 5% each year. In addition, one’s credit rating suffers because no rental income is generated. Instead, the first property should be used exclusively as an investment, with the return from the rental income used to pay off the loan and build up capital.
Too little room for negotiation – Error 2
Mistake 2: Buying without enough negotiating leeway
Another mistake is to buy a property without enough room to negotiate. The price of a property is usually negotiable, but investors should have enough leeway to negotiate with the seller and get the best price. It is also important to keep a sufficient reserve for unforeseen costs.
Buying without accurate check – error
Mistake 3: Buying without accurate verification
A third and most important problem with buying a property is purchasing it without a thorough inspection. It is important to check the property thoroughly before making a purchase decision.
Interview with Thorsten Bader
Thorsten Bader, an experienced real estate expert, has built up the online portal “Immobilien-Erfahrung.de” together with his team in order to provide interested parties with comprehensive knowledge and tips on buying and financing real estate.
More expert tips (free of charge) can be found here: