It goes without saying that real estate is a very promising investment option – it enables wealth creation through appreciation, builds equity and provides a hedge against inflation. However, it’s not as liquid as other investment options and requires a significant amount of capital. Therefore, while investing in real estate, you need to proceed with caution.
Below are some important factors you must consider before making a significant financial commitment:
Pick a strategic location
If not chosen wisely, the location of a property can be a deal-breaker at the time of selling or leasing. So, when investing in residential property, pick a location close to basic amenities as well as recreational areas and entertainment hubs. A safe neighborhood, away from the bustle of the city, yet close to major transit routes is perfect for investment. Before investing, inquire about future developments around the location and the intended usage of open spaces. These will help you understand if they will aid in the appreciation of the property value or prove to be a nuisance. for residential properties in Gurgaon with strategic locations.
Valuation of property
Property valuation is an integral part of the pre-investment process. It’s an unbiased professional opinion of a home’s value, based on which multiple aspects of property investment are hinged – home loans, sales listing, investment analysis, property insurance and taxation.
In order to assess the true potential of your investment, you must use a valuation method that considers variable components such as demand & supply rate, economic outlook, property market performance and trends, apart from the location, aesthetics, size & facilities of the property. Our advice – seek the services of a professional real estate appraiser.
Investment purpose & horizon
It would be inadvisable to dabble in real estate if your lack clarity about the purpose of your investment. Here, the purpose of your investment will determine the kind of returns you will make. Like if you’re investing to lease, you can enjoy regular passive income & long-term value appreciation. But at the same time, you will also have to deal with the hassles of being a landlord – make time to meet tenants, manage their issues, maintain the property and more. If you're investing to sell in the short interim, you shouldn’t expect high returns. And if your intention is to sell the property in the long run, you could expect to benefit from the appreciation of its intrinsic value.
Invest in under construction properties over existing ones
In our opinion, under construction projects are ideal from an investment point of view. For one, they cost less and offers higher appreciation once they are ready. They require less maintenance and have clear titles as compared to existing properties. And since they are in the developmental stage, it has the flexibility of customization.
The only drawback – probable delay in delivery. But if you choose a reliable developer, that won’t be an issue.
We won’t sugar coat the fact that investing in real estate is not as simple as other investment avenues. But when you have a real advisor on your side, rest assured you’ll be able to make the right investment decision, confidently. So, if you’re thinking of adding real estate to your investment portfolio, talk to a real advisor at 3ca today.