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Published on 10/17/2017 2:17:49 PM
Tips before property investment!
Are you looking for a low risk investment? Real-estate is a fabulous option but keep these tips in mind before putting your money in it.

If someone is looking for low risk and relatively se cure investment option which offers good potential in the long run, then property investment would be the choice. One of the fastest growing sectors in India is real estate, holding the huge prospects in major sectors like housing, commercial, hospitality, manufacturing, retail and more.

Vipul Patel, the Director of a leading real estate group, says, "Real estate investment is a very profitable style of investment and includes low risk. Whenever an individual has gathered a good chunk of money he/she must immediately invest in property as the returns are good and there is no as such 'bad time' for property investment if it is a smart one. The buyer must focus on good locality, infrastructure and good workmanship of the building."

Purchasing a flat or plot is one of the wisest decisions amongst the investment options. Investment in real estate is usually less volatile than other investment avenues. Property investment can be of help in yielding both short term as well long term profit. Short term investment plan, though make quick returns, is usually a risky option. In the long term plan, the capital rises as the worth of the property rises. Long term investments are done with pre planning and the aim is to buy a property at low rates and then sell it off at a higher rate. This is possible only if the investor is assured about what is going to happen to its investment after a few years. So, if you are investing in real estate to yield good returns, then you need to focus on a few points of consideration which are as follows:

Locality is of prime importance: For a good gain in just few years, you should invest in a prime locality. It is still smart to invest in a not-so-happening house on the best street than investing in a happening house on a not-so-happening street as you may have the opportunity to build equity in the former case. You can refurnish the house, fix it and then sell it at a greater price. This is called 'fixing and flipping'.

Invest in developing areas: It is always advisable to invest in a growing area and not just in the already established one. The pre established areas usually reach up to their worth over a definite period of time and later on it becomes stagnant, so the rise in its worth is relatively lower. Moreover, buying a property in an established area can be quite expensive and you may need to compromise on the size as you may end up investing in a small sized property. The pre established area's properties have set designs but that of the developing areas have the potential to build properties with a modern design and a better vision. Investing in growing areas can yield profits after few years but it surely can be worth it.

Good vicinity in terms of facilities: General amenities lying in the vicinity adds up to the value of the property. Whether the property has facilities or at least the potential to have them, like good transport system and connectivity, hospitals, shopping malls, cine ma halls, parks, swimming pool and community club, then it makes the area lively and thus may interest the crowd. The scope of expansion plan is usually more in growing areas. While already established areas have set facilities, the developing areas have the potential to launch modern styled amenities keeping the current demand in mind.

A good scope of commercialization: The areas where big corporate firms and companies exist or have scope to be constructed have a good potential as their employees need a decent space of residential establishments. These areas are likely to be the hotspots in near future and may have high end amenities provision for such a high end crowd. The value of such an area is likely to increase.

Keep legality in mind: If you buy any property, make sure it is in accordance with all the property laws. Later any title clearance issue should not hamper you from selling your property stress-free, and if not then your property can be declared illegal too. Not to mention it would be hard to sell, forget about the profit, as it will completely defeat the purpose of your investment.

Pritesh Shah, the Director of a leading real estate group, says, "When one looks for an investment, make sure you keep a very clear budget according to your abilities and needs. You must look for great facilities like club house, swimming pool and sports centre. As per the selection of the area, I would say that investing in a developing area is much wiser than investing in an already developed area where the rates are also relatively more expensive."

The few basic points of consideration listed here just deliver a broad view at the time of making investment in real estate; however you should also take into account other relevant criteria while finalizing the deal.