The essential checklist for Real Estate Investors
Foraying into the real estate market is a serious and exciting prospect. Considered by many to be the king of all investments, the property sector can give you some incredible returns.
But with any investment comes some amount of risk, and as an investor you want to minimise that risk. It helps a lot to know beforehand the things to consider while making a real estate investment. This way you can ensure that all your real estate investments in India will only work towards strengthening your finances.
To help you with your planning, here is a property investment checklist that’ll make the best use of your hard-earned money.
- Are You Really Ready?
Take a long, hard look at your finances. Even if you’re earning a comfortable salary, you can’t dedicate all your money towards this one investment. Allocate money to your recurring expenses first; food, electricity, water, transport are things you cannot ignore. Make a proper budget and check how much money you can actually invest without falling into a difficult financial situation later on. If you’re taking a loan you can calculate the instalment amount with the free Online EMI Calculator on the Bajaj Finserv website.
- What are You Looking for?
There are a host of options available for investment in the property market. Empty plots of land, houses, apartments, commercial properties, the list is endless. Your choice will depend upon various factors like whether you want to rent out the property, save tax, or wait for a few years to exploit resale values. Just make sure you’re not buying protected or agricultural land.
- Where are You Looking?
There’s no other place where the phrase ‘location, location, location’ holds more value than real estate. All properties appreciate overtime but some appreciate faster than the others. Scout out areas with high levels of development because this is where the real growth of the property sector lies and where phenomenal returns come from. Spots close to schools, hospitals and markets are your best bets.
- Mind Your Language
Before you go marching into the real estate market, pick up a few books and learn all the jargon that you can. Don’t end up looking like a rookie when you’re faced with terms like carpet area, super built-up area, buy-out rate and effective rent. You want to conquer this trade, not be overwhelmed by it.
- Baby Steps
It goes without saying that you don’t want your first investment to be your last one. Start off small; invest in a good property rather than investing in an expensive property. Real estate investments are no joke since they involve rather large sums of money. Learn the ropes properly before you make an investment which could put you at more risk than you’d be comfortable handling.
- The Extras
There are always overhead expenses involved with buying property. These include registration, stamp duty, taxes, insurance and maintenance costs. These vary with the size and type of property that you’re planning to invest in, so make sure you take all of these into account when you’re planning your budget.
If you’re looking to make more investments in the future, especially if they involve taking up a loan, your property can be of great help. Financial institutions like Bajaj Finserv provide Loans Against Properties. These help you save a lot of money as loan against property interest rates are relatively lower compared to traditional loans.
Whenever you go out searching for properties to invest in, don’t forget to keep this property purchase checklist by your side. These simple steps are sure to take you a long way and help you grow your money with ease.