Don’t miss these points while investing in Real Estate
The term Real Estate is divided into different categories such as commercial properties, residential properties, industrial land and agricultural land, but we always relate it to residential properties only. Generally, buyers assume that residential properties and real estate are synonyms. They don’t think much about any other real estate segment like agricultural land, industrial land, and commercial properties. Buying residential properties is one of the typical real estate investment decisions that every buyer makes. Owning a property is only a matter of privilege than an investment option. Nowadays home loan providers have come up with various good proposals to create a platform for buyers to invest in homes.
Before investing in properties there are numerous question and speculations that may arise into our minds. For instance: Do we have sufficient knowledge about real estate? Is it a sensible decision to invest in real estate? Is there any point that we have to consider before buying a house? Is there is any other options for investment and so on?
This write up will clear all your queries and provides tips that you should consider while investing in real estate.
Real Estate as an Investment Class
As we have discussed earlier that real estate is divided into different categories. Buying a piece of land under any category is considered to be an asset. It is understood that the demand for land is always increasing though it has resulted in increasing price and demand. From the last few years, the realty market has provided an annual return of about 14–16% on residential properties. Due to high return on residential properties, investment has also increased in other real estate segments such as industrial and commercial investment.
The return on investment in real estate is higher than the bank FDs, it is a sensible decision to invest in real estate and treat it as an asset. It surely provides a thrust to one’s overall investment portfolio.
Investing in real estate then you must consider these points
If you are making an investment for the first time in properties in Gurgaon or any other location then you should go ahead and buy property without thinking twice. Most of the buyers want to buy a home in a short span of time, of course, considering every aspect of buying a property. When you plan to invest in any residential or commercial property, make sure that you consider the following points and take the best decision for yourself.
There is also an option for investment in an industrial and agricultural land where the value of land is increased even if you don’t give it on rent. Meanwhile, the investment return may not provide you immediate return in terms of prospective areas. It is observed that return on investment at the time of final sale is quite high thereby it can easily compensate for the initial periods of less return or no return.
Geographies for investment:
If you are planning for investment then geographic perspective is extremely important for you. Buying properties which are near to the rapidly growing Industrial Area and Technology Park it gives a higher return on investment at a short span of time because these places would get sudden growth trajectory. Similarly, buying property in elite and posh areas is likely to provide a higher rental income because these areas are sought by those people who have a good amount. Therefore, it is necessary to choose the location carefully before buying a property.
When you are planning to make an investment in the commercial or residential property then you must check out the physical and social infrastructure of the area. If you are planning to buy apartment complexes you must check out the social & physical amenities along with the overall safety at a particular area. Also, check out the level of pollution as it should obviously be low. If you are investing for family purpose or planning to have a family in future then you should search for locations which have greater connectivity to numerous institution, schools and hospitals.
Investments in real estate need not solely be in residential properties as it can be in other options listed above. Real estate is surely an asset which also provides tax benefits apart from decent returns on investment.