Real estate is one of the most favourite investment options in India. So much so, that it is often the first thing that comes to mind when someone thinks of investing money in the long-term and why not, after all, we all have seen our grandparents, parents, siblings and relatives invest into property and boast about it from time to time. Let’s delve deeper and find out what is causing all this hype.
It may be one of the most popular investment options in the country but it has faced some major hurdles in recent years. Government has tried to revive the industry through RERA regulations but so far, the changes are quite prominent. A number of incomplete projects, empty inventory and short of demand have contributed majorly to the current situation but all is not lost in the real estate sector if you make the decision wisely. If the property stands true on all the parameters of a good investment, it is still the most lucrative investment option in India. In spite of all these conditions, real estate prices are continuously increasing, however, the rate of appreciation vary from city to city. Buying a property in Gurgaon will give a faster appreciation that buying a property in Hyderabad.
Why You Should Opt For Property Investment?
It is clear to everyone that real estate investment garners an appreciative rate of interest over the long term but only a few know that it is popular for its ability to generate handsome short-term income too. This is what makes property investment an all-time favourite of investors in India. Whether one invest in residential property in Delhi, commercial property in Gurgaon or developed plots for sale in Bangalore, monthly rents is the sure form of short-term income for all three types of property. The increment in monthly rentals is independent of the inflation, especially in the metro, Tier 1 and Tier 2 cities. The real estate investment guarantees good returns in the form of rental income and capital appreciation. The rental income grows constantly with inflation while capital appreciation makes money the most during the time of high demand for the land parcel in the area. Here are some key points to consider while investing in real estate in India:
It might be a popular investment option but is quite an expensive deal too when it comes to investment option in India. The price of a property could lie anywhere between a few lakhs to a couple of crores, therefore, it becomes important to set a budget while going on real estate shopping. How much exactly you can afford to shell out? As a rule of thumb, let’s just consider someone who is earning about Rs 100,000 per month and have a saving of Rs 500,000 can afford a property of Rs 35,00,000. You can always apply for a home loan from a reputed bank but this where your credit score comes to play.
#2 Value for Money
The location of the property could be an important factor in deciding the value of money you will get if you are investing in the property. Find out the rental variations in the area and how much monthly rental it could generate for you. The annual rental yield of the property should be a minimum 3 percent of the value of the property. A property with good connectivity with roads, public transport, schools, markets and hospitals could garner a good rental income for the owner.
#3 Builder’s Reputation
Property is as good as its builder or developer only. Make sure you are in business with someone who could promise you a quality build and design for your property. Not only it will affect your monthly income but will also affect the capital appreciation in the long term too. A quality build could diminish the maintenance cost to the minimum and give you a good return of investment on the property.
4# The Outskirts of Town
Property in the downtown could be quite expensive and way out of your budget. This is the time to invest wisely in the outskirts of the city, a place which is nor too close nor too far from the centre of the city. It might feel that the property is at a good distance from the city at the time but in the coming years of development, it could prove to be one of the best investment of your life. For example, investing near Bangalore Airport in the developed plots for sale will make for a good investment decision.
Once, you have made up your mind to invest in property in India, all you need to do is to think it out with a calm mind to decide on a particular property. A few days of research could prove to be one of the best investment decision you will ever take in life.