5 Mistakes in Property Business that Can Cause Bankruptcy

Undergoing a property business is practically easy and easy. On the one hand, the high demand for property such as apartments, houses and shop houses makes this business a wet field to gain a lot of money.

But, on the other hand there are only stories of property entrepreneurs who failed and suffered a lot of losses. The reason for many property business failures is due to the error of the property developer itself. Want to know what are the mistakes? The following 5 property business mistakes that are often done and cause bankruptcy:

Over Credit

The main mistake most often made by property developers is excess credit. Yes, excess credit is a situation where you as a developer fail to make credit or debt payments. As a result, you have to transfer the property that is being developed to another party.

If that happens, this is very detrimental. Therefore, Tulsa bankruptcy lawyers are needed to help you stay away from that. Also, pay attention to your financial condition if you want to do property business. Therefore, the property business requires large capital. Do financial planning correctly and appropriately.

If necessary, ask for advice from experts directly. At present many property business classes are open to the public. You can gain knowledge as well as market products in such activities.

The Choice of Location is Not Right

Position affects achievement. The location of the business will affect the success or failure of a business, not least the property business. Lots of property developers who experience huge losses due to wrong in determining the location of property development.

In order not to get caught up in this fatal error, try to find out how the local government development plans. Look at places that are indeed potential, don’t just prioritize the price of land that is still cheap. Because it can be a boomerang for you in the future.

Time of delay construction

As a consumer, you will definitely be annoyed if the house, apartment, or shop that you buy has been delayed for years. Well, this is a mistake that is often done by property developers.

Because of the length of time that the construction was even delayed for years, the name of the property developer will be smeared so it is quite difficult to get consumers in other projects. So, avoid this mistake if you really want to work in the property business world as a developer.

Not prioritizing quality

Another mistake that property developers often make is that they don’t prioritize quality. Usually this is due to the high profit target to be obtained. Because of pursuing these benefits, the developer forgets to prioritize the quality of the building.

Certainly, when someone feels how bad the quality of the property is built, various negative talk about the developer will circulate and make the public no longer trust the developer.

Lack of promotion

In the property business, promotion is very influential in sales. From banners, billboards to online promotions are the best way to increase property sales.

Therefore, if you do not do enough promotions that attract customers, your property business might fall apart. Make a variety of attractive promotions such as cashback of tens of millions of rupiah to low installments to attract buyers.