How to Invest in Property?

How to Invest in Property?
Real Estate Investing - Favourite Homes

Indians have realized that the real estate sector in the country is one of the strongest in the world. In spite of economic meltdowns, the realty sector in India has always managed to survive and has always been the first to start climbing the graphs again.

As compared to investing in gold or in stocks, there are always better and more reliable capital returns with the realty sector in the long term. However, if you are looking for short-term gains, then you are barking up the wrong tree!

Choosing the right property in the right location and at the right cost is key to making a good investment. You will need to do a good amount of research to find the right kind of location. Buy into a growing locality where you know property prices are likely to go up with the years. The cheaper you buy, the better and bigger your gains at the end of the day, so buying at the right price is absolutely essential.

If you are planning on buying a property for rental purposes, to ensure that it’s in a good neighborhood as no one wants to live in an unsafe, out of the way area. Buy into a place where there are job sources, schools and colleges nearby as these are essential features for renters too.

Different property types offer different gains. A vacant plot in the city will get you more than in the suburbs. Similarly, you are more likely to make bigger gains on villas rather than apartments. But as far as rent goes, it’s easier to rent out apartments over villas. Investing in apartments also means lower maintenance costs as against villas. Investing in plots, on the other hand, means there is no regular income to be made from it until the final sale.

You need to understand the market around the property you are intending to buy. Find out from the local council office about any upcoming infrastructural projects coming up in the area as this might increase or lower the viability of your investment. No-one wants to live on the doorstep of an upcoming noisy major road, but a quiet residential side lane has more takers.

Finally, investment in property is a long-term wealth builder and you shouldn’t expect prices to start shooting immediately. It isn’t like investing in stocks either where you can sell off part of the investment when your financial conditions turn unfavorable. You should be cautious and put off selling until the point where you have made a handsome profit.