Investing in property is something most people dream and desire. It not just gives you your own space but also provides lucrative returns. Here are some important points you can keep in mind when investing in real estate property:
- Make sure you Plan ahead of time
Planning is the first step an investor needs to take in advance before any purchase. Advance planning can help you get the best deal or close the deal quickly. From the budget to the property type and location, ensure you know exactly what you want before taking the plunge.
- Spend time on Research
Research is an important step in the property purchase funnel. From the location to financing, thorough research needs to be conducted. It is advisable to check on forums, real estate portals, news and reviews before you buy a certain property. Go through and understand all the contract documents before you sign it.
- Be aware of Market Trends
Do a comprehensive analysis to work out the market value of the property you are intending to buy. Apart from the current market price, you need to take the future potential also into account. The process is called comparative market analysis and it’s extremely powerful when you’re trying to negotiate the best possible price. Try to gather as much information about the location. Whether you are planning to live or rent, profitability of the property depends a lot on the location you have invested in.
- Inspect the Property thoroughly
Irrespective of whether the home is old or brand-new, do a physical inspection of the property once you have narrowed down on the property. This would enable you to take stock of any maintenance or repairs to be carried out before moving in.
- Stick to your Budget
Most times while buying a property, you might be tempted to fall in love with something that is beyond your reach. The best idea is to come up with a maximum budget limit and not exceeding the same, no matter how attractive the property may look like.
- Do not limit your selection choice
Do not buy the first property you see. Be sure to look at all the options from various builder and see the prices being offered. Your research will help you narrow down on the best option for you.
- Calculate the overhead costs
Apart from the overall cost of the house, there are certain other running costs involved. There are the costs associated with registering the property, buying kitchen appliances, wardrobes and bathroom fittings that are essential to move in or rent out the house. The best advice is to make a list of all of these items that you need to buy and allocate budgets for it while looking for a property. So if you’re budget for a house is Rs 80 Lakhs for the property, this should ideally include all the overhead costs.
- Work out your financials before taking the plunge
Apart from selecting the right property, picking the right financing option is also important. There are plenty of financing options out there so be sure to research them all and pick the right option that suits you the best. It is also advisable to search for financing options parallel to your property search exercise. This would help you complete all formalities on time.
- Ask for Site Visits
These days, most properties are listed online where you can take a virtual tour of all the facilities that are available. While this is a good place to start your property purchase journey, a site visit will be helpful in case you are in doubt. Whether you are looking for a luxury apartment in Chennai or a villa in OMR, do not hesitate to ask for a site visit.