The key pointers for making smart investments in Real estate property

Real estate happens to be one of the most volatile and unpredictable sectors in the Indian economy.  The soaring profit margins and the transitory period in which they can be attained are the key facets of business in real estate market.  Thus, the desire to own ideal real estate property offering better returns in future, becomes common to many. 

investments in Real estate property, Real estate property, tips for real estate investments

Buying a piece of land to build on or for investment purpose relieves the headache of buying an already-built home. However, the high level of stake involved makes it imperative to consider various factors before investing your hard-earned resources.  So, here are a few tips to ensure that you make smart investments in real estate property:

  • Following the right business approach is a pre-requisite for entering into the real estate business. An investor with a ‘quick entry and quick exit’ approach is not likely to yield the expected returns. Thus, instead of focusing just on quick moneymaking, one should enter the business as a wheeler dealer. 
  • Secondly, the property seeker should know everything about the property he is going to invest in. Thus, he is required to undergo a comprehensive research about the land and its vicinity. The important factors to be considered while buying real estate in India include its accessibility, road connectivity and the access to electrical power, natural gas, town water or sewer. It is equally important to consider the sources of water (rivers, creek, lake, and springs) near the property. You should know if there is potable water on the site, the flow rate and quality of water. One cannot afford to ignore analyzing the facts like whether the land drains well or it stays wet for much of the year, how does it land lay (slopes, bottomland, elevation change, etc), If it is desirable to other potential buyers if you had to sell it. Consulting a few buyers who have purchased real estate property in the same area can be of great help. They are the best people to be consulted when it comes to acquiring complete information about the location of your property. 
  • The factors like the current property prices in the area and their chances of increase/decrease in the near future are of prime importance while making an investment decision in any real estate property. As a matter of fact, having a complete understanding of the past financial performance of the property in the market is important for avoiding the chances of incurring any losses. You should know certain facts like the price at which the property was sold to the last owner and the price paid by the owner before the present one. Consulting a realty agent can help you in confirming the actual price of the property in this case. The track record of increase in the price and the time period for which the owners held the property can also be maintained. 
  • While making an investment decision, it is important to ensure that the property is not a subject to covenant and restrictions. You can confirm the annual property tax online as well. Making a legal check on the history of the land is crucial for determining if the property has cleared legal titles or not.

Certainly, the real estate in  India is one of the most lucrative, reliable and evergreen options when it comes to generating revenues by investment. However, the slightest of mistake, can make you incur heavy losses. Therefore, it is imperative to keep in mind the aforementioned key pointers; for making the best investment decision with better returns in future. 

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  • Vani Ahuja

    Amazing article, Must Read for people who are looking to invest in India