Brandon Turner wrote a fantastic article for Business Insider outlining the seven worst mistakes that real estate investors make.
Wikimedia/Hieronymus Bosch
These mistakes were repeated multiple times by investors through the boom years in Czech Republic.
The most common ones we saw were:
- #1 Buying Based On Future Value – Many developers in Czech Republic were even pre-selling flats which were not yet built at prices they expected them to be worth in a year when they were completed.
- #3 Being Unrealistic With the Math – So many investors did not even do the math themselves but trusted real estate brokers calculations whose income came from the sale of the property. Conflict of interest?
- #6 Over Leveraging Yourself – When fantastic property gains didn’t materialize enabling ‘investors’ to flip the property at a profit, they faced the situation of a negative cash flow situation. Some investors had picked up many of these properties and now face unloading them at a substantial loss.
Any favorites from the article for you?
Post a comment below or email me at: nathan@czechpoint101.com.
Updated/Aktualizováno: July 22, 2014,
