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Top 10 
Real Estate Investment 
Mistakes on Debut
With mass participation from the young 
professionals of the city, the Real Estate market of 
Chennai has seen a boom in the last decade. But 
investment is not as easy or safe as it seems from 
the outlook.
Penciling out your deal 
Write down & calculate; A negative cash flow 
property will only offer you a measly return 
on investment- that will hardly cover your 
property maintenance expenses.
Wrong estimation 
Overestimating Returns & 
Underestimating the cost; Lack of 
Chennai Real Estate Market 
knowledge.
Wrong renovation approximation 
Take advice from an experienced investor; Be 
more than a little bit conservative in your 
renovation budget estimation.
Undermining renovation time 
Have a realistic perception;
Thinking of the words ‘that much’ 
It is best to be prepared for such a situation; 
Expectations taints the realistic view of the 
transaction but awareness can sometimes 
overshoot, if necessary.
Thinking it’s a ‘turn-key’ deal 
Without contribution from the investors’ part 
it is never going to happen.
Flipping properties 
Flipping is a good option only when the 
market in on the rise; Do your homework, get 
detailed knowledge about the present Real 
Estate market conditions in Chennai.
Comparing to stocks 
Unlike stocks, where you look to your bank 
statements every few months, you need to 
deal with bigger issues right away in this 
kind of investment.
Assuming it as a low risk sector 
Risk is a factor associated with all kinds of 
investments. It depends on how accurately 
you analyze the market conditions.
Taking someone for his words 
Skepticism and Analysis are the main tools 
towards getting the best of everything and 
everyone.
These are the ten commonly recurring 
mistakes a novice real estate investor in 
Chennai is most likely to make; Avoid them 
from now on. Do not make any assumptions; 
just go by the facts and figures as they are.
Medavakkam | Perumbakkam | Vengaivasal 
www.sumangalihomes.in

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Top 10 Real Estate Investment Mistakes on Debut

  • 1. Top 10 Real Estate Investment Mistakes on Debut
  • 2. With mass participation from the young professionals of the city, the Real Estate market of Chennai has seen a boom in the last decade. But investment is not as easy or safe as it seems from the outlook.
  • 3. Penciling out your deal Write down & calculate; A negative cash flow property will only offer you a measly return on investment- that will hardly cover your property maintenance expenses.
  • 4. Wrong estimation Overestimating Returns & Underestimating the cost; Lack of Chennai Real Estate Market knowledge.
  • 5. Wrong renovation approximation Take advice from an experienced investor; Be more than a little bit conservative in your renovation budget estimation.
  • 6. Undermining renovation time Have a realistic perception;
  • 7. Thinking of the words ‘that much’ It is best to be prepared for such a situation; Expectations taints the realistic view of the transaction but awareness can sometimes overshoot, if necessary.
  • 8. Thinking it’s a ‘turn-key’ deal Without contribution from the investors’ part it is never going to happen.
  • 9. Flipping properties Flipping is a good option only when the market in on the rise; Do your homework, get detailed knowledge about the present Real Estate market conditions in Chennai.
  • 10. Comparing to stocks Unlike stocks, where you look to your bank statements every few months, you need to deal with bigger issues right away in this kind of investment.
  • 11. Assuming it as a low risk sector Risk is a factor associated with all kinds of investments. It depends on how accurately you analyze the market conditions.
  • 12. Taking someone for his words Skepticism and Analysis are the main tools towards getting the best of everything and everyone.
  • 13. These are the ten commonly recurring mistakes a novice real estate investor in Chennai is most likely to make; Avoid them from now on. Do not make any assumptions; just go by the facts and figures as they are.
  • 14. Medavakkam | Perumbakkam | Vengaivasal www.sumangalihomes.in