Property investment is a time-tested and one of the most secure investment options in India. For Long Term Security and Investment option property investment is the best option.In this article we will guide you to find right property for Investment.
In this guide, we’re sharing 6 tips to help you to get the right property. They include:
- Location
- Size
- Price
- Approvals
- Reputation of Developer
- Finances and Home Loans
However, before making an investment decision, there are some key factors that are a must to be taken care of. The investors must factor in the following pointers before finalizing a property.
Location
If you are investing your hard-earned money for investment purposes or for self-use, location is the primary factor for consideration. The return on the investment potential of the property is directly proportional to its location. If a property is too remotely located, the ROI potential will decline proportionately. It must be ensured that the location is connected to social amenities such as schools, hospitals and markets.
The investor must be convinced that the location is served by the connectivity means readily and is reachable. Even if the property is for self-use, the location will remain the paramount factor before finalization.
Size
In most Indian cities, 2BHK and 3BHK flats are generally affordable, and most sought after by middle-class tenants. It makes little sense to invest in a bungalow or villa located in an area where there is no demand for homes that are too costly to rent. If you want to invest in a big luxury property, look at areas where people can afford to rent such a home.
Price
If you have paid too much for a property, you will find it very difficult to earn enough to cover your initial costs and make a rental profit. But one should not look for the cheapest of homes. Such flats are either too small to be interesting to tenants or located in low-demand areas. One should compare a property’s price now with where it stood 4-5 years ago. If you decide to sell the property after 5-6 years, you will want to profit from the sale.
Approvals
Despite checks by the Real Estate Regulatory Authority (RERA), the instances of land and property-related frauds keep appearing in the newspapers. The real estate investor must get sure that the property in question is duly approved and all the documents are in place. Some of the key approvals to check are Encumbrance Certificate, power of attorney (PoA), completion certificate, municipal approval, fire NOC and RERA registration. In the absence of the required approvals, the investor might be at the receiving end in cases of disputes or legal exigencies.
Reputation of Developer
In the era of RERA, the absence of RERA registration raises doubts in the minds of investors. Before investing in or shortlisting a property, an investor must consider the track record of the real estate developer. The property investor must go for an established and reputed developer as it minimizes the chances of fraud and unnecessary delays in property acquisition. As reputed developers have experience in delivering multiple projects successfully, the investor can rest assured of the decision.
Finances and Home Loans
If you are considering a property investment, the money factor is one of the most important aspects. You must be well aware of the sources of finances to buy the property.
If you have the entire money at your disposal, well and good. However, if you plan to take a home loan, you must be aware of the payment plan or conditions of the developers. In most cases, the payment is made in accordance with the construction status of the property. If the property is ready to move in, you must ensure that you get the possession as soon as you deposit the money.
If taking a home loan is on your mind, it is always suggested to do good research about the loan interest rates. You must explore all the options and select the institution which offers the lowest rate of interest. However, you must be aware of the hidden charges, if any.
In addition to banking institutions, Non-banking finance companies and housing development companies also offer loans at attractive rates. However, you must be double sure of the legitimacy of such agencies.
In summation, in addition to being a financially-intensive decision, property investment is also an emotionally-intensive decision. So keep this guide into your mind and find right property for investment.