We must look at different factors before making any investment decision. An investment is made with a purpose of creating something which can yield gains in the future. There are many options available like mutual funds, stocks, fixed deposits, bonds and real estate etc.
Real estate is a good investment option for many people. A property investment earns you money either through rent or resale of the property later. A rental property investment or real estate investment income is the cash flow income which you get from tenants once you rent out your property.
Buying a home or property is not an easy task but, if carefully done, can be very fruitful in the long run. You have to be really smart to make a smart investment. The property rates in the cities like Mumbai, Delhi, Bangalore etc. are increasing at a rapid rate. Therefore, it is good to invest carefully at the right time.
Initially, it involves some efforts but slowly it gives good returns if bought carefully. There are some issues with all kinds of investments and same is while investing in a property.
Here are some points to keep in mind before investing in a home–
- Money – First of all be very clear about the money involved in buying and maintaining a property. If you are not very clear about your own funds then it’s a good idea to wait for some time. A good property which gives good cash flow and good returns are not easy. Therefore, do not jump at an opportunity but make a wise decision.
- Information – Obtain all the information before buying a property. How much appreciation can you expect? Is it a good neighborhood to invest in? How good is the builder in terms of a long-term relationship and reputation? Also, find out about the expected rents in that area if you are buying it for rental purpose.
- Calculation – Do your calculations properly. It’s all about finding out the right numbers or an approximate idea. If you are going to a broker, do not go by his numbers but ask him to clarify everything beforehand. Sometimes there are many hidden costs which they mention later. It’s better to ask him about the total cost at the first instance. Also, keep in mind the repair and maintenance costs.
- Expectations – Do not expect immediate profits. A property is a very good investment but it depends on various factors. Sometimes it starts giving good returns only after a few years and you may not get back the actual money initially. Do not expect an immediate return.
- Size and plan – You should always check the actual size of the apartment and also understand your requirement carefully. Are you willing to invest in an apartment or a plot? If you are looking to buy a plot – Are you going to build a house in the future? If yes, do look for the size properly keeping your family in mind. And if you are going for an apartment, understand the carpet area and super built-up area.
- Visit – Before investing you should visit and check the site or the property. Inspecting the place and judging it according to your knowledge is always helpful. It’s better to make few visits and clear your doubts with the builder or owner before you decide to buy a home.
- Location – If you are looking to buy the property for the purpose of renting it out, keep in mind that everyone looks out for a good location especially a family. 3 major things to look out for – Schools, Job locations, and a safe neighborhood. It’s always better to check with the people staying in the neighborhood. They can give you a better idea of the things like appreciation of the property rates in that area.
- Builder– You should either go for a reputed builder or it’s always better to verify the builder. When we were looking for an investment property in Bangalore, we came to know of Casagrand builders who have properties across different cities of India. One particular property which we liked is Casagrand Royce, premium apartments in Hoodi which is worth investing due to its location. It is very near to the ITPL which is the IT hub of Bangalore. This project has 277 premium apartments with all lifestyle features.
The good point is that all their properties are at a very approachable and good location. They have similar apartment and villa projects in other cities too.
Contemporary new age architecture
Property rates are soaring constantly and that’s why real estate is a good investment idea for investors. It is profitable in the long run as you can rent, sell or lease the property. It can give you good returns. One can take loans from the bank and later rent or lease the property to reap the benefits of the investment.
What do you think about investing in a property? Do let us know about your experiences.