Loss in property investment

Many are saying that investment in real estate is very lucrative. This is because property prices always rise. But did you know that there are situations in which property investors suffered terrible losses. Here are some things that cause losses in property investment :-

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1. Purchase of property that is not productive
– This factor is one reason many are losing property investments.There have been affected by salespeople who say the potential of the area although it is not yet known. Many such cases occurred in remote areas where there is speculation that area to be developed. Once the house is ready, no promises of development, while investors have been buying property in the area. This resulted in significant losses.
2. Moreover commitment
– Some of investors are investing, regardless of ability. Willing to deposit a high but not able to get loans due to high loan commitments. This resulted in loss of deposit payment issued.
3. Natural disasters
– Natural disaster is an event that can not be predicted. It can happen anywhere even expected to secure a place. The problem of natural disasters that occur suddenly, many resulting in a decline in property prices. Japan is experiencing a tsunami and an earthquake recently experienced a severe drop in property prices.
4. The problem of the global financial crisis
– The problem of the global financial crisis could lead to falling prices real estate market as well as causing losses to investors. This problem happened, and recently in the United States there is a serious drop in property prices due to financial problems.
5. No target
– If you invest in property, you must have a target. What do you want to do with the property? Would like rent, sell, operate or lease? This is important because many of those buying property, but no goals. Eventually the land was abandoned without any activity performed.
6. Lack of knowledge.
– It is the important part. You must have knowledge to prevent from being cheated, paying more than you can afford, tax and etc. Without knowledge, many investor loss more of their money.

Okay, that’s all the 6 tips why some of us still loss in property investment. If you want to make profit in this field, you need to pay attention at this main 6 point.  It could help you to prevent from losing more money and affect your financial.

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