How to Avoid Mistakes When Buying Real Estate and Make a Profit - Advice from Mercury Group CEO Irina Alazova

The real estate market offers great opportunities — but also potential risks.

A bad decision can lead to serious financial losses instead of profits. Irina Alazova explains the most common mistakes and how to avoid them.

Many buyers focus only on their personal needs and ignore important factors that affect the future value of the property. For example, buying a flat just “for yourself” without checking if the area will grow or if the price is competitive may cause problems when you try to sell it later.

Let’s say you buy a cozy two-bedroom apartment in a quiet family-friendly area with good infrastructure. It’s a great place to live — but if there are no signs that the area will grow (like new roads, shopping centers, or business development), and there are many similar apartments for sale, it will be hard to sell it for profit.

On the other hand, an apartment in the same building with a terrace or a beautiful/unique view could rent or sell faster and at a higher price than a similar one without those features

So, it’s important to look not only at the building itself, but at the specific unit -comparing things like price, features, and uniqueness.

Before buying, analyze:

• Growth drivers of the area: Are there plans for new roads, malls, business centers, or environmental improvements?
• Price competitiveness: Compare prices of similar properties in the area. Check the size, layout, condition, and any extra features.
• Liquidity: How easy will it be to rent out or resell the property? Who is your potential buyer or tenant?

A famous developer may give you confidence and help the property sell faster. But relying only on their name is risky.

You still need to evaluate the project fully — look at the location, growth potential, and pricing. A trusted name doesn’t always mean high returns.

Liquidity means how quickly and easily you can sell or rent the property. Price must be competitive, and the layout and location must meet market demand. Extra features like concierge service, parking, playgrounds, or a gym can raise the property’s value and appeal.

These details can help you charge a higher price or rent.

Don’t forget about running costs like maintenance fees and utility bills. Lower costs mean better rental income and make the property easier to sell.

Using unverified brokers or agencies can lead to big problems — even losing money. They may give false information, charge hidden fees, or act unprofessionally.

Always work with experienced professionals, ideally those who invest themselves.

They understand the market and area well, and can help you through the entire process: choosing the right property, renting it out, and later reselling.

In Conclusion

• Successful real estate investment depends on:
• Careful market analysis
• Choosing the right property
• Working with trustworthy professionals

If you avoid these common mistakes, you’ll have a much better chance of earning stable, long-term profits.

Remember — investing in property isn’t just about buying a nice home. It’s also about smart financial planning.

Mercury Group has been working in the Latvian real estate market since 2000.
We offer access to all residential and commercial properties in Latvia — including off-market listings for sale and rent. Our many satisfied and repeat clients (including corporate investors) speak for our quality.

We’ll guide you through every step of your purchase or rental process. We’ll help you choose the ideal property, complete the sale or rental contract, and handle all necessary documents.

We also offer full concierge services to our investors for everything related to buying property in Latvia.