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Real estate investment is considered the most viable and safe option for investment in India. The first step to investing in real estate is deciding whether one wants to start with a short-term rental strategy or buy a real estate property for the long term. Before choosing, one should always consider their financial condition, the market situation, and monetary goals. The most common way to make money in real estate is through appreciation—an increase in the property’s value that is realized when one sells. Some aspects that work towards the appraisal in the value of both residential and commercial options are location, development, and improvements. Indian real estate has witnessed several transitions in the last decade, which have changed the face of the sector. Introduction to GST, RERA and the market post-Covid-19 has led to an increased interest among consumers to own a home.

The rental yield (fixed income) grows with time. Generally, this growth keeps pace with inflation. Capital appreciation happens due to demand growth. With the nation’s youth heavy demographic and upward growth trajectory, demand for property is on a rise. The dual effect of assured rent and value growth allows the realty sector to generate unparalleled returns.

 

Location

It is all about the location when it comes to investing in residential real estate. Many factors come into play here, including access to public transport, safety, proximity to one’s place of work or school, coupled with other facilities such as hospitals, malls, movie theatres, and many more. When buying in an upcoming district outside the main city, other factors should also be considered, such as distance to neighbouring cities and infrastructure projects in the area. Investors should also carry out a thorough check of the property to get a better understanding of its potentials and liabilities. Further, one should analyze the blueprint and compare it with the actual size of the flat. To enjoy a more transparent experience, buyers should review their options through RERA and take the help of a legal expert throughout the purchase process.

 

Stage of development

 

The pandemic has made people realize the value of owning a house. Further, the resultant work- from-home structure has encouraged many to consider properties in remote locations. There has also been an increase in buyer inclination towards under-construction projects in these far-flung areas. The main reason behind this is that such projects are comparatively more pocket-friendly, yield higher ROI, and are compliant with fair trade practices under the RERA regulations. The ready-to-move-in options, on the other hand, offer the ease of immediate possession and tax benefits. However, they are on the higher cost side. In many cases, the quality of construction in such units is not up to the mark.

 

 Thus, during decision-making, customers should weigh the pros and cons of both these options.

Title and other property-related documents

 

An overall check of the documents is critical to establish the ownership of the property and avoid any disputes in the future. It can help one gauge the amount of legal work required to finalize the sale deed. Buyers should be mindful of hidden charges and paperwork requirements such as documents related to mortgage or ownership transfer. These are sometimes added in the property documents and sale agreements by sellers or brokers. One should note and negotiate any ambiguous fees like local or statutory charges, impeding repair charges, and insurance premiums before purchase.

 

Resale value

Resale value is a crucial factor to consider before investing in a property. Ideally, property prices must appreciate significantly with time to ensure healthy returns on the initial investment. However, homebuyers usually ignore this while making their decision. They often focus solely on a prime locality or the budget, which can be a mistake in the long run. If one chooses the wrong house or location, the future sale price may be less than the desired returns. In situations like this, the main issues to consider are: Whether or not the property will appreciate more than the market or what amount of the investment’s potential upside is already present in the current purchase price.

 

Buying a home is not just about finding a place to stay; it is also an investment in one’s future. As it involves a massive capital outlay, this decision must be taken carefully. Buyers must consider various factors, such as the location and the likely returns on the property. A little care, in the beginning, can ensure a safe investment for years to come.

 

 

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