Nothing comes close to generating revenue as much as real estate in India. Not only is there ample space and land to occupy, but the increase in demand due to massive population numbers also adds to its positive reputation.
For investors, there’s hardly ever a clear sign that may be hinting towards a positive outcome. It’s all about observation, research, assessment and ultimately, putting it all on the line. However, there are some things knowing which will help you in your investment venture. Let’s take a look at them:
One of the major things that real estate depends upon is the locality and the developments that are due to happen in the area. It’s difficult to say whether these developments are always going to be in your favour or not. That’s because sometimes, things don’t really go as you want them to and situations might arise due to projects getting shelved or delayed.
For example, you might take a look at the oncoming project of the Metro and think about investing in a commercial sector instead of flats in South Mumbai. However, later, you might find that the planned residential development near South Mumbai has shifted because there are no local transit stations of the new metro.
Similarly, if you’d known about the metro station, you would have probably decided to go for a residential home in the nearby community. Not only will it guarantee a stable ROI but there’s a high chance that the property in that neighbourhood will appreciate as well.
Transaction Costs and Acquisition
It’s going to require more than just a sum of money to complete your property purchase. Needless to say, you’ll be accruing more costs throughout the process so, it’s best to have some cash set aside for this.
In order to acquire the property, you’ll need professional help as well. Right off the bat, it’s best to hire a professional real estate agent that can make the entire process easier. There are going to be documents and deeds required to verify, officiate and complete the transaction.
This documentation will also need to be attested and verified by officials before being processed. For that, you’ll have to make a few appearances in governmental offices as well.
These are some of the things that can be made easier by hiring a real estate agent who will take care of it all. In addition to this, your agent will also help you locate and narrow down possible properties that can be of interest to you. When you’re trying to start your research, you would do well by starting off with some key insights from various agents. Although you shouldn’t base your venture on something that an agent says, you can still factor it in if you think they speak from experience.
Before you invest in one, a property requires detailed and thorough investigations. Simply put, it would be foolhardy to go in alone and take that much burden alone. It’s not wrong to admit that you need professional help in this regard.
Property investigation is a lot of work and can’t be done the first time around. You need to visit the property a few times before you can be completely sure about its features and condition. Starting from the door or the front porch, work your way to the bedrooms and focus on the ceilings and walls. People tend to ignore the corners of the rooms that might have signs of seam and damage to the paint.
The amenities and facilities that are offered with properties are often not in the best condition. Moreover, they can sometimes not even be what the property owners/developers claim to be. That’s why it’s essential that you check everything thoroughly like a future resident yourself. After all, that’s the only way you’ll be able to ensure your tenants that this house is perfect to be called their home.
It’s a daunting yet crucially important task to maintain and manage your investment home. Since no one will be interested in a damaged house that requires repairs, your investment needs to stay in top-notch condition. To get the best tenants to show interest in your property, you need the property to be of interest to them. You won’t be able to do that if your investment homes aren’t picture perfect. Even if they are sea view apartments, they still need maintenance and management.
Some people go about this by hiring professional property managers that take care of things for them. Otherwise, you’ll have to regularly inspect the place every few months to make sure nothing is harmed. When you have tenants, you can work out agreements that clearly state who’s responsible in case of damages.
Regardless of what you choose, your investment will stay locked in for a long time. Therefore, it’s essential that you remain patient and wise throughout the tenure of your investment.