There have been a significant influx of interested Chinese investors in Guam. It’s no surprise they would be so curious to check out possible business and investment opportunities on an island with so much potential.
Real estate investment has provided many capitalists with profits and tax benefits. But like with any investment, real estate can be quite a maze to navigate with all its market trends and other complexities, that if ignored can cause an investor to lose much more than he could ever expect.
Before risking your investment, take the time to do a little research and learn all you can about the Guam property market. Avoid these common mistakes and ensure positive returns on your investment.
- Inability to find the right company to work with. First thing’s first. Make sure you work with the right estate professional from the get go. Find someone who shares the same work ethic and principles and who is well connected in the industry. Your agent should also be well-informed of the current market trends and other important details.
- Failure to backcheck the numbers. Don’t get caught up in all the hype on high rates of return in real estate investment. Make sure you check and double check everything, from rents, payments made, taxes, expenses, and possible modifications. Even if you’re working with the right real estate company, it’s always better to confirm all your facts.
- Make sure to keep the cash flow positive. Real estate property that uses up cash monthly can drain your working capital. This eventually creates stress and frustration. It is almost impossible to predict constant appreciation especially for an unseasoned investor. The tension on your cash flow may compel you to sell the property before the benefits of ownership are even realized.
- Don’t spend positive cash flow. Make sure to re-invest you cash flow back into the property payment that will speed up the amortization schedule. This also reduces your debt load and in turn increase your equity, which builds your net worth.
- Not having adequate insurance. Investment property brings with it a lot of liability. From tenants, cars, parking lots, cleaning equipment to property liability, having adequate insurance coverage is extremely necessary to protect your hard earned assets.
- Failure to inspect, approve and confirm all documents. There are many documents that need to be reviewed and it can all be overwhelming. From building permits, zoning laws, health licenses, loan documents, title policies, rental and lease applications. It’s best to secure the services of a professional to relieve you of the stress and let the process go through smoothly.
- Inability to do a thorough inspection. It’s best not to overlook anything. Hire a professional inspector to determine any structural damage, pest problems or other recurring problems. This way you avoid any costly mistakes.
It’s always wise to work with a value driven real estate professional. Ellen’s Realty has been working in this business for over 30 years and has a slew of happy clients who rely on them for all their real estate needs. Let them help you make sound business judgments and reap the benefits of hard earned investments.