A brainstorming session with family members can be the first step towards this important step. Here are some important aspects that you can focus this discussion on
- An analysis of the different investment options will reveal the nature of different investments in the current scenario. Crashing Stock markets, fluctuating gold prices, low interest rates on bank deposits and banks declaring themselves as insolvent, these will help understand that real estate investment is the wisest decision in current times.
- A little more insight and analysis of the current situation will reveal that Investment in Residential real estate and not commercial buildings will produce rental income. As the result of the paradigm shift towards work from home, commercial buildings will not produce rental returns in the near future.
- Now since this correct decision has been taken, here’s how to go about implementing it.
Decide on the Budget:
This is the prime factor on which other considerations like the nature of the property (Plot/Apartment), the choice of locality, the Sq.ft of the house & no.of rooms if it is an apartment or the area of the plot depends on.
Choose the City:
It is always better to invest in metropolitan cities for the growth potential for the assets is very high there. There will be growing industries – Automobile, Manufacturing, IT and all this brings employment opportunities, and hence there is demand for residential properties to satisfy the needs of the professionals.
Also choose to invest in the same city where you are currently residing, for easy management and maintenance of the asset. If it is your first house, you will have the pride of moving from a rented house to your own house, if it is for investment it is sure to earn returns in the form of rent and also good appreciation.
Plot or Apartment:
This is not a tough decision and is basically governed by the basic requirement, Is the purchase of the property for immediate use or is it an investment? In case of immediate use, should look for an apartment/villa in the suitable neighbourhood where you can move-in in the next 3 months, this is to eliminate the burden of EMI and the rent for the current accommodation. If investment is the criterion then purchase of plot in a developing locality is definitely a good option as the investment will be less and the appreciation will be quite high.
Choose the builder :
The choice of the property developer is very crucial. Established and recognised promoters are reliable and also deliver on their promises. They can be relied to deliver on their commitment of time and also the design specifications. Choose RERA approved projects, for as a buyer your rights are protected and also there is transparency in the process and the necessary approvals are in place acquired by the developer.
Survey the Neighbourhood of the property:
Choosing a developed or the locality with scope for development is very important. The appreciation of the property depends on this factor. Choose one which has good employment opportunities in the neighbourhood, this will draw more professionals who would want to rent properties close to their place of work, so there will be regular rental income. Similarly the property’s worth will also multiply.
Verify the documents & Seal the Deal :
Once all the above factors have been considered and the right property selected, proper verification of all the related documents (can link to our blog will lists all the documents to be checked) is mandatory, help can be sought with legal consultation for this. Once verified the next step will be the registration of the property to seal the deal.