10 Factors to Muse before Investing in Real Estate- the Key
Making an investment in real estate is one of the biggest decisions a person makes. Although real estate is one of the most lucrative investment options, it’s better to be cautious before taking the plunge. Investing in the property of a trusted developer like The Key from Pune is sure to be a rewarding decision, but not all projects are as reliable and safe. Nevertheless, if you’ve taken the decision of going ahead, have look at the guidelines below before finalizing anything:
- Location of property: For most individuals, the location of the property is the predominant factor that determines their decision about investing in property in that particular location. A number of aspects have to be taken into account with respect to a location such as its property rates, availability of conveniences (including power supply, water supply, etc.), transportation facility, and resale value.
- Legitimacy and Licences: Before you buy a property, check the documentation, licenses, and all the credentials that validate a property’s legality. Commencement certificate for work, approved building plans, property tax receipts, and environmental clearance are some more parameters you need to check thoroughly.
- Investment Purpose: When you buy a property, you’re investing a huge sum of money, so it’s important to make the wisest decision. You should be clear about the purpose for which you’re investing and its likely impact on the future. Are you buying the property to reside in the new property in the future? Do you wish to rent it out? Do you have plans to use it as your weekend getaway or simply want to sell it off in the future and get better returns? List down the all reasons and then make a decision.
- Financial Position: If you have a stable income, a steady job, and/or a good amount of money you can keep aside for investment, only then making an investment in real estate would make sense. Otherwise, it’s better to wait till things improve instead of investing now and regretting later due to unforeseen circumstances.
- Loan Facility: If you need to take a loan to invest, do thorough research, and find out all the implications of applying for one. Find out the right financial institution and best terms from where you can take a loan.
- Current Real Estate Market: Find out whether the prevailing situation in real estate is suitable for purchasing property or not. If experts recommend buying a property in the current scenario, you can go ahead or it’ll be better to have patience and wait.
- Infrastructure and Amenities: The location where you’re planning to buy property should not be totally cut off from settlements and important facilities. Even if the place where you plan to invest is far and wish to enjoy a long drive to get there, transportation facilities should be available there. Hospitals, shops, some bank branches, eateries, etc. should also be available and easily accessible there.
- Weather and Climate: You need to find out the condition of the place you’re going to invest in different seasons, especially during the monsoon season. Things shouldn’t get messy or damaged due to eventualities like heavy rainfall during times like monsoon due to which you have to step in always to set things right.
- Under Construction/ New Construction/ Old Construction: Most experts will advise you to invest in a property that is ready or at least nearing completion. New construction properties are priced a bit higher, but you may get a more contemporary home with better architecture and structural design. As for old construction property, they’ll be cheaper, have old-world charm but may not be very long-lasting even though they’re known to have stronger foundation and construction.
- Readiness to Meet Unexpected Expenses: When you buy a new property, you ought to be prepared to encounter unforeseen expenses. Situations like certain repairs, an increase in taxes (e.g. property tax), lower rent, or difficulty in evicting people who rent your property can come up. Make sure you have the time, energy, and resources to handle such complicated situations.
Do take suggestions of knowledgeable people you may know as well before making a real estate investment as it will only help you make the right decision.
