Want to invest in real estate in India? Buying property in India is one of the toughest and the biggest investments for most of us and seldom would we want to go wrong with the investment decisions that we make. But, it’s easier said than done.
Real estate investment in India is a pretty complicated process and requires due diligence and extensive knowledge about all the legal and financial aspects of home buying. If we don’t fully understand the complex nuances of the process, home buying can become overwhelming and intimidating.
Therefore, to help you make a wise choice, we have pulled down 8 expert residential real estate investing tips. Keep them in mind while investing in land and enjoy favorable returns on your investment.
Choose your location wisely
Zeroing on a prospective location is the first step in the right direction. As the old adage goes, ‘location matters’, and while buying a property in India, location matters a lot. So, before you fork down a subsequent amount of your savings over a house, ensure that the property you are planning to buy is in a good location. Search for the best location or residential area and then find a house that fits into your budget. It might not be the best house on the street, but it will always be in great demand because of its great locality and neighborhood. You can always invest some money to fix it up later and get favorable returns when you sell it to someone else.
Some options that you can explore include:
Planning to buy a house in Bangalore? The IT hub of the country, Bangalore is one of the fastest growing cities in India. The city offers numerous housing projects with world-class infrastructure and high-end amenities, and allows you to enjoy quick capital appreciation.
Closely competing with Bangalore is Pune. The city is an ideal investment destination for home buyers in India. There are numerous ready to move properties in Pune that are not only affordable but promise to offer good return on investment too.
The City of Dreams – Mumbai attracts one and all. The high-end residential properties in Mumbai offer quick capital appreciation and favorable returns on investment. The sub-urban areas of Mumbai – Thane and Navi Mumbai – offer affordable housing projects for home buyers and are worth exploring.
Real estate developers have come up with numerous new residential flats in Gurgaon that offer superior infrastructure and world-class amenities at affordable prices, and should definitely be delved into before finalizing a deal.
Real estate investments can be a huge source of profit. But home buyers need to strategically plan their investments to reap bigger rewards. Close look at the current market condition, property location, and good credit history can help you enjoy favorable returns on your investment.
Get in-depth knowledge about the market
The realty market witnesses its own share of highs and lows. While we cannot predict the future, we can easily analyze the market trends and make informed assumptions for profitable investment. So, carefully study the current market scenario – what is the rate of the land now versus last year? Is the market soaring high with skyrocketing prices? Has the area already seen an investment boom or is it still developing with multiple housing projects coming up? Having comprehensive information about the market trends can help you strike a good deal at most realistic prices.
Predict future growth
Before investing into a land, analyze the future growth prospects of the area too. There are various yardsticks that can help you do that. Find out if the area being commercially developed? Check if there are any (or proposed) good schools and colleges nearby? Verify if the area is well connected via different modes of transport and also ascertain the distance between the area and various city hotspots. This will help you analyze the future growth prospects of that area and how your property will grow in the years to come.
Know your taxes
Property taxes can have a potential influence on your realty investment decision and future ROI. While buying land in India, be aware of the ongoing taxation laws to determine the real value of your house after the deduction of all taxes.
Consider real estate market as long term investment
Long term investments give maximum capital appreciation, and this holds true for the realty sector estate too. That’s why, it’s best to buy a property with long-term goals in mind. Choose a location that’s still developing and promises to give better returns on investment in the near future.
Partner with a good real estate agent
Find a real estate agent who is good and competent, and half your job is already done. Masters in their trade, housing agents have comprehensive knowledge about different on-sale and under-construction properties in the area of your choice. They can help you easily find a house that best matches your needs, budget, and aspirations. However, before you finalize an agent for your house hunt, make sure he has a large number of properties to offer and can also help you with all the legal formalities and loan processing procedures.
Check your credit report
It is more than likely that you are going to apply for a bank loan for purchasing a house. Processing of your loan application depends on your credit score. The better the credit score, the faster the processing of your loan. Therefore, to ensure steady processing of bank loan, ensure that there are no problems in your credit report and you have no long-standing loans against your name.
Patience is the key to success not only in life, but while purchasing a house too. Never be in a hurry and take hasty decisions while buying a house. You may end up making a wrong choice. For bigger benefits and higher returns on investment, do a thorough research about the property of your choice and pay due attention to details.
While investing in land could be risky and needs expert knowledge of the field, these tips can help you ride high on investments.