Real estate investing is a major decision taken by investors. When investing in real estate, you must ensure that it will provide a good return. There’s a lot more to it than what appears at first sight. You don’t want to invest in a property that won’t help you grow your wealth in the long run. It is critical to invest in the right property.
Choosing the best investment property necessitates research and careful planning. For that, you should seek professional assistance.
Currently, the real estate industry is in a good shape despite the ongoing pandemic. Sure, COVID-19 adversely affected the industry for most of 2020, but things took a turn for the better in the Q4 of the same year. Fast forward to today, despite the coronavirus still looming over us, the industry is on the rise.
Here are some of the tips that can help you in making the right property investment:
Location of the Property
When it comes to investing in real estate, location is everything. Before deciding on a location, make sure it is accessible to railway stations, metro stations, markets, and schools. Properties with good infrastructure provide a good return on investment and also generate high rental income. For those looking for long-term investments, investing in emerging markets with future growth potential can be a good option.
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Investors must decide whether to invest in under-construction or completed projects, or whether to invest in resale or new properties. If you choose a completed project, you will avoid the hassles of project delays and will be able to move in immediately if the deal goes well. On the other hand, investing in an under-construction project can be advantageous because the property can be purchased at a lower rate than a ready-to-move project, and there are numerous tax benefits associated with a home loan. You must be clear about the type of property you are investing in in order to make an informed decision..
Figure out your property cost
This is a critical metric to consider, especially when purchasing an existing rental property. As a general rule, you should seek out investment properties with high cap rates. This means you can expect high returns and enough money to cover your mortgage and other expenses associated with owning a rental property. You should invest in areas with potential for development because such areas earn higher returns than already expensive areas because there is little room for future price appreciation.
Purpose of Investment
Investment objectives play a significant role in determining which types of investment properties are best for you. Long-term investors prefer properties that provide capital appreciation and thus seek properties in developing areas, whereas people looking to invest in a property for rental income seek properties with easy access to basic amenities. Whatever your investment goal is, keep it in the forefront of your mind when evaluating investment properties for sale. This will assist you in making wise decisions that are in line with your goals.
(By Aman Gupta, Director, RPS Group)