Investment in the real estate sector has become a popular way among various classes of people to make quick financial gains. Historically, Indian investors put money in mainly two commodities, gold and real estate.
Real estate investment has become a popular way for people to make quick financial gains. It has become a trend to hold property, waiting for it to appreciate in value before re-selling it.
Having cash for a down payment is the quickest and easiest way to enter the real estate market, but for those who do not have capital to spare for any such investment, there are other options including borrowing money as well as a number of unusual and creative paths to ownership.
Whenever you plan to buy house or office, please take care of following points:
Reputation of builder: If you are planning to buy a property you can check it thoroughly and take a decision. But for an under-construction property, going just by what the brochure claims is not advisable. You should do a complete research of the builder on the internet or with property agents in the market. However, it is always recommended to choose a builder with at least one successfully delivered project. For first time builders, one should check the background of the promoters and their credit ratings (if available).
Make your asset earn for you: In case you are not going to start using the property immediately, explore options of putting it on lease for the time being. This will help in covering EMI and maintenance. Leasing a commercial property has been a worthy option since the very beginning.
Today, it has become an emerging trend to lease residential properties as well. But, if you are buying under construction property, invest where you have assured returns. There are also some environment-friendly projects, which use special technologies to provide you monthly savings on electricity bills. These could be a good option, if you are looking for a long-term investment
Invest in future: With a limited budget like in early 2000ís, it was wiser to invest in Gurgaon compared to Delhi. It is always safe for an investor to research and invest where infrastructure development is going on or is expected. Returns will be many folds in those areas.
Invest with buy back option:
To assure the home buyer that the price of the property will escalate, some developers offer to buy back the flat after a fixed period at an appreciated price. Such properties usually have a lock-in period of 3-5 years. At the end of the lock-in period, if the pricing has gone up the owner can retain the property else he can sell it back to the builder at the predetermined rate.
Bring in a partner: For those who are big on ideas but short on capital, bringing in a partner who will provide the funding and allow you to do the managing can turn out to be an attractive option. Putting together a contract that establishes who is responsible for what and how the profits will be divided ensures stability in the investment. It is advisable to check out real estate investment groups, which operate similarly to mutual funds. Instead of a large sum of money up front, an investor can buy shares in real estate by making periodic payments. There are both advantages and disadvantages of making an investment this way. Taking out time to investigate such an option carefully before committing can turn out productive. Today, property is at its lowest and hence itís a buyer's market. Anyone who has the funds and invests today should surely get high returns in future.