TOP 5 mistakes Investors make

Investment is the preservation and increase of money. In order to invest wisely, in addition to knowledge, you also need intuition and a cold mind.

There are general rules that apply to any investment, not just real estate.

But, often inexperienced investors succumb to emotions and violate them.

Let's take a look at some of them:

· Buy low market, sell high market. It sounds very clear, but when it comes to business, people, for the most part, "try to jump into the last car." The collective unconscious kicks in.

Opportunities are noticed only when the market is already actively growing and this becomes clear to everyone. When it is necessary to sell, they buy, when it is necessary to buy, they sell, they are afraid of newsbreaks and do not enter the market that has reached the bottom.

· Now it has become fashionable to be an "investor" and people often confuse, for example, buying a home for themselves and investing, choosing comfortable, but illiquid objects. As a rule, investment property and real estate “for yourself” are completely different things.

· Price is one of the most important components of an investment. It must always be below the market in its category. Competitive market analysis must be carried out for each case. It will also not be superfluous to conduct analytics over the past few years.

· When investing in commercial real estate, location is everything! Violation of this rule may result in loss. In addition, it is necessary to carefully calculate all the costs of taxes, because there are no tax breaks and no cheap mortgages in this segment.

· The ideal investment formula for the short term is 30% -50% of your remaining credit. This rule is especially suitable for investors with small budgets.

Remember that there is always risk in investing, so only risk the amount you can afford to lose.