Investing in real estate has always been known as a good option for profit generation. Having said that, Sarabjit Singh, Founder and Architectural Designer, Villa Ortiga says, “Real estate investment acts as a life-saving resource in the face of adversities and unforeseen circumstances.”
He further adds, “Therefore, it is essential to keep certain factors in mind to enable maximum revenue generation from the investment.” For instance along with the location of a property, the design and quality also play a big role.
- Location of the property: Experts say the location of a property is one of the most important criteria to consider when investing in real estate. Singh explains, “Ensuring that all essential services and amenities such as schools, markets, offices, and airports are in the vicinity and that the area is well connected to the other parts of the city is one of the easiest ways to guarantee that the real estate investment appreciates well.”
- Design of the property: “The value of good design is realised over time,” says Singh. According to him, when a building is designed by a good architectural firm that, in addition to ensuring well-designed spaces, also invests in premium quality products and finishes, the expenses of repair and maintenance reduce, thereby driving up the valuation of the property.
- Quality of the property: “Developers who use state-of-the-art construction techniques and the latest equipment hand over high-quality, durable buildings that can stand the test of time without running into many wear and tear issues,” points out Singh. Thus, this ensures a minimum spend on building maintenance while saving costs.
- High Rental Yield: In addition to the increment in its inherent value, a real estate investment can also provide the investor with rental income. Selecting a property in a prime location that is well designed and has used quality material and construction techniques, experts say will substantiate a higher rental yield, thus making it easier to profit from the investment.
- Quick Resale Value: “The real potential of any real estate investment is only unlocked when it is sold, thus making a quick resale value highly crucial in this regard,” explains Singh. Factors such as the location, scope of appreciation of the land, and local demand of that particular neighbourhood, should be taken into account when purchasing a property.
He further adds, “Investors should study the track record to see who sold the property last, at what price and when to determine the resale value.”