Many of us have grown up with the dream of building or buying our very own dream home. However, as it is one of the largest investments one can make, it is imperative for home buyers to carefully evaluate every single detail, from costs, government policies, and taxes to loan plans.
Consider the Following 5 Factors Before Investing in Real Estate:
Location of Property
The property location is the most vital factor to consider while investing in real estate. After all, it’s one of those factors that determine the growth opportunities of the area over the years. So, check out the neighbourhood, markets, and other amenities if you want to buy a property for residential purposes. For commercial purposes, consider how well it is connected to warehouses, transportation hubs, and highways.
Property Value
Estimating the value of the property is as crucial as assessing its location. For a correct property valuation, factors like taxation, deprivation, and premium come into play.
So, determine why you want to invest in real estate. Do you intend to live there, rent it for an additional income, or resell it later at a higher price? After considering all these factors, draw up the valuation of the property and understand if it’s the investment for you.
Investment Purpose and Budget
Investing in property is good, but do not forget to understand:
What is the investment purpose of the property? Do you want to rent it out, preserve it to move in later, or resell it later?
Is it an investment for the long term or the short term?
Is the investment within your budget?
When you’re unclear about these aspects, you might make wrong decisions and regret your purchase.
Real Estate Laws or Government Policies
Before you put your money on any property, here’s a checklist you should tick:
Check if the property or the project has been registered with RERA.
Make sure to verify all the documentation.
Do a thorough investigation about the builder and check if they have the necessary approvals from the local authorities.
Research the laws applicable in the area where you want to buy a property. Do not forget to learn about taxation policies.
Return on Investment
One of the most popular reasons behind real estate investment is the long-term appreciation and attractive ROI. If you want to buy a property as an investment, the ROI is the most crucial factor you should consider. Before investing in real estate, set your expectations concerning the profits you’re expecting, and that will help you determine the type of property to buy.