Property investment – Things to keep in mind for guaranteed returns

Right investment yields great returns

Property as an investment
Property as an investment

Every Indian holds a mutual sentiment – To own a house through property investment. Over the years the growth across different sectors and industries in India has refuelled the aspirations of all Indians. All working groups, age groups, entrepreneurs, professionals and the salaried group of people look for lucrative investments which give them considerably good returns over a certain period of time, they are willing to lock their money.

Property investment and the real estate segment have been significantly growing over the last decade and everyone is looking for suitable options as per their budgets and requirements. But just before you walk through the beaten path, it’s important to weigh your options, and weigh them right.

Investing in the right property will lead to structured and guaranteed returns. It is important to invest rightly, after looking into a sum of factors like builder’s reputation and credibility, location, legal implications, market scenario and the tax and budget implications. Read on to know how you can make all the right moves to ensure guaranteed steady ROI.

Points to keep in mind while making a property purchase.

  1. Invest in commercial properties – Plots, complexes, buildings and shops are a great way to earn good returns from rental income. Seek for properties in prime business locations, markets and hubs especially those with a ready infrastructure and a good, established connectivity.
  2. 1 BHK as an investment – Investing in a 1 BHK is of great value and easy-to rent out. Buying a property in any credible project which gives reasonable returns on a small investment, along with an opportunity for an increase in the capital value is an intelligent investment. Investing in such properties which are in close affinity to commercial spaces is a major boon. In most cases, the developer also helps to tie-up with an agency which maintains and leases out the property to corporate companies.
  3. 50 lakh and above investments in a residential property after sorting out other constraints is always a good investment for good rental returns, provided you have looked into other factors.
  4. Investment for more than 3 years for good returns – Properties are meant for long term investments at least for more than 2 years to yield good returns. It’s possible for a few properties to have increased prices, but it may not be a clear indication of what the future holds. An exit, usually after 4 years or more yields beneficial results.
  5. Requirements for a safe and sound investment in realty – Buyers are getting fantastic deals and the developers are competing over market shares to woo potential clients. High-profit margins are possible on lands/plots purchased historically, in areas which have growth potential in future. Invest in projects which are 35-40% complete or bank approved as it will lead to quicker approvals and loans. Negotiation, right seller, research – both, on the web and the physical project, builder’s background verification are keys to grab a good deal. Check for great deals on exciting properties from credible builders and developers at different locations across southern cities like Bengaluru, Chennai, Kozhikode, Coimbatore, Hyderabad and Kochi.
  6. Pre-launched and newly launched project – A pre-launched or a newly-launched project from a reputed or a new builder is based on your risk appetite. A pre-launched project is awaiting for approvals and is invested in, based on the assumption that the approvals will come through. There is a risky element to it, but the return even in short term can be very rewarding. Newly launched projects have a lesser risk associated with them and can be negotiated and purchased quickly.
  7. Buying lands or plots? Estimate correctly. – Infrastructure development is an absolute necessity. More so with governments plan of establishing ‘Smart Cities’ all over India. Choose wisely when it comes to lands and plots. Have a thorough check of the papers, owner’s background verification, necessities like water supply, electricity, safety and security, law and order, road infrastructure, etc. Once these factors are settled, the land value is bound to appreciate.
  8. Apartments vs. Plots vs. Independent Houses – Plots generally yield a greater appreciation than the apartments. Apartments are a good investment to yield regular rental income. The rental values of independent houses seem to be lesser than the apartments and to find buyers for such properties is also quite a task.
  9. The location is crucial in property investment – An ideal area with good connectivity, water supply, electricity, market areas and other infrastructure is a great location to invest in a property. Best location reaps in good returns on the property investment, along with fetching a good re-sale value.

Over the years, the various reforms and polices from the Government have given a significant boost to The Real Estate Industry. Property investment has been every aspiring Indian’s dream who wants a place of their own and can yet, yield good rental or value out of it.

The Union Budget 2017 has also further opened gates for property investment. This makes it an ideal time to invest in property. Check to find all kinds of properties along with great deals, as per your budget and investment requirements.