Yet, buying real estate is a major decision and necessitates expert advice. You need to consider many critical points before you finally close a deal, which this article will highlight.
This will enable you to buy your property with confidence.
1. Know your dream before investing in it
Before you look out to buy a property there are some questions that you need to ask yourself .
- Is this a pure investment ?
- Is it a Home for your old age like a retirement home ?
- Is it a back up in case anything goes wrong at the current location?
Once you have an answer for the above questions you will have an idea that if its for investment you can opt for a plot in an upcoming and well connected location, as it will be easier to sell them with profit.
While buying just for the future sale of the property, you must also consider the time factor for sale of it. How fast you could sell the property would determine the amount of investment.
You would never like to invest for a very lengthy span or on a property that would take time to be sold off.Another smart decision you might consider in this context is to buy more than one property of smaller value, so that it would be easier to exit with handsome profit .
You may also invest in a property for merely personal use and future stay. This requires proper consideration of the apartment if you need—decide if it is to be a 2 BHK or 3 BHK.
An in-depth understanding of this need would help you decide on the monetary factor you are going to engage in the purchase. You should remember that every extra sq. ft. is also an additional cost/investment.
2. Know your preference: Branded or Non Branded?
When you are proposing to invest considerable share of your earnings, then you must be sure that your money gets the best bang for the buck. Paying a little more for a branded property is always a smart choice because they come with assurances of legal clarity, construction quality and all the approvals. Such properties get better rents or in case of plotted developments, easier to resell.
3. Know your Proximity Preferences
Investing in a property normally happens once in a lifetime. So you should be completely aware of all your preferences, before deciding on the location where you wish to settle.
Is it a popular residential area or is close to your friends and family? How well you are familiar with the locations and its prospects?
Are there plans for a metro or shopping mall or an educational institution which will push up the price in future? Investing some time and effort to understand and analyse Government’s plans for the area would do wonders for your ROI.
In case you are considering retirement options, you may choose a location that has all the necessary amenities close by.
4. Know your Budget
Your budget is one of very key determinant of your purchase. What to buy, where to buy and when to buy would be decided by the budget you intend to invest in the purchase. However, if you find a property that is likely to give you a better ROI, you might want to reconsider your budget. Your local contact is the best guide for advising you on this.
Self-Awareness is the Key
The main thing that you must keep in mind above all others is never to get carried away by emotions—real estate is a hardheaded business—all head and no heart.
Informed decisions are the key to safe investments and profits. The hands that indulge in congratulatory handshakes cannot afford to be burnt.
So, take time out to think, research and analyse before you take the leap to your property in India.