Should you Invest in a City Other Than your Home Town?
Post by : favouritehomes
It’s understandable if you want to be close to where your money is, after all, everyone wants to keep an eye on their hard-earned money. But of recent, there has been a shifting trend with investors in real estate buying property away from their city of residence. With the increasing use of technology, viewing properties in other parts of the country is just a click away.
It’s so easy to go the long distance now, especially for those investors with access to apps on smartphones as well as knowledge to do SEO research on buying properties. Easy access to the internet has surely widened the horizons for real estate investors. But before investing in another city, you need to do a decent amount of research and find out what’s driving the market there.
This is because there are still many fly-by-night operators in this industry who are known to take investors for a ride. And this is in spite of the implementation of the regulatory body called RERA! This is also probably why a majority of Indians still prefer to buy properties within the city they live in.
Investing in your own city means you are familiar with the layout of the locality, performance of the specific developer and can easily monitor your investment. Investing in your own city is also easier as you already have a good network of contacts to advise you on investment opportunities and know the various localities and their potentials.
- Among the important factors that drive a location’s popularity among investors is the labour market. On a very basic level, cities are labour markets and if the periphery of a city is expanding, it means that employment opportunities in that city are on the rise. This makes the city a safe bet for real estate investors.
- Another important factor is affordability. Tier-II cities and the peripheral areas of Tier I cities are usually more affordable for real estate investment.
- A reputed real estate developer is a key factor in putting down your money. Many investors, however, get fooled by developers offering cheaper rates. These builders might not have proper paper works for their projects or provide sloppy construction or delayed deliveries. Staying in a different city in such a situation can really prove to be a hardship. Don’t fall for such traps!
Finally, if your city isn’t yielding investment returns, there is no harm in trying out other cities- after doing sufficient homework!