Investing in real estate properties involves a thoughtful decision. Proper planning and research are necessary before you make these investments. If you are planning to purchase a new property In India, you need to be strategic in your move. Over the last few years, the real estate market has been consolidating across the country. The market conditions look good, both in the residential and commercial real estate segments. However, you should check out certain aspects, before you invest in the property. Here, you will come to know about what you should be examining before you buy your first property.
Your present financial condition
One of the misconceptions about real estate investment is that you will start earning lucrative returns as soon as you buy a property. However, the reality is something different, and you may have to wait for some time, after buying property In India, before the returns start pouring in. In other cases, you may have a good rental income from the property. However, it might be of little use, if you have to pay a monthly mortgage and have high operational costs. Insurance fees and taxes add up to the expenses. Then, other expenses may lead to additional drainage of your income, in the form of property maintenance, paying bills, covering vacancies and marketing the property to new tenants. Therefore, only after you pay off the mortgage, you can enjoy some real benefits from the property.
You may have thought that buying property In India can bring you instant profits, but that is not the case. Make sure that you are financially positioned in such a way, that you can pay off the home loan or mortgage, and manage the additional expenses that come across the way. You may be having another mortgaged property or debt, and in these cases, it would not be a good decision to make a real estate investment.
What about your credit rating?
For first-time property buyers in India, the credit rating or credit score does matter. The score must be excellent, or else, the institutional lender or bank may reject your home loan application. In these cases, you need to find other means of funding. When you reach out to a private lender, you remain exposed to the risk of higher rates of interest. The risk factor in these deals is even greater. Therefore, when you think of buying a new home, make sure to check your credit rating. In case you find that it does not look too impressive, take time to pay off your debts and enhance your score. Well, you can improve your credit score in a number of ways. Have a discussion with the financial consultants to improve your credit rating.
The location of the property
Property owners must prioritize the location of the new residential or commercial property In India before they make an investment. The reason is, the property value is largely determined on the basis of its location. In case you buy a property in a prime location, you can enjoy better rental returns in the coming years. Property is an asset, where the prices keep appreciating over the years. Therefore, you need to choose the right location, ensuring that you can gain monetary benefits in the form of rent. Even if you want to sell off the property after a few years, you can get a good return, if the location is well-selected.
Well, if you are interested in buying property In India for commercial purposes, make sure to get it in a neighbourhood where people want to buy new homes. Besides, all the necessary civic amenities must be available close by. In most of the metro cities of India, the demand for property is high, due to the availability of quality education and healthcare amenities around. Besides, the transportation system and connectivity around the area must be seamless. This would ensure that you can get across to the desired destinations in and around the city in quick time. However, you may look beyond the property hotspots. This ensures, that you can tap the potential that the real estate market holds for you in the evolving areas. Besides, when you buy a property in a good location, it takes lesser time to sell it off. You can also enjoy rental income in a shorter time span, renting or leasing off the property.
The property type
When you plan to buy a property In India, you need to decide whether you would go for residential or commercial property. In general, the returns from commercial property in the big cities are better. Besides, you should check out the costs that you need to bear. For instance, when you have extra space in the form of a condo, you need to bear greater fees for maintenance. In these cases, you need to go for a smaller one, rather than a bigger one with 2 bed rooms. You should also note, that newer variants of commercial property are gaining attention from the investors. These include godowns, co-living spaces, serviced apartments and so on. It would be wise to research the market conditions before you invest in property In India.
Returns on investment
This is something every homeowner would look for when they invest their hard-earned money in a property. The returns come in the form of value the property delivers. In case you use the property personally, it should bring you some relative benefits, as compared to other properties. Alternatively, when you use the property for commercial purposes, you should be able to reap a good return from the same. In large cities and urban areas, people invest in residential and commercial properties to earn a good rental income.
Evidently, several factors need to be considered, when you invest in real estate in India. It is, therefore, recommended, to reach out to an agent or advisor. The real estate market in India looks good. If you are thinking of investing in property In India, this would be the right time.