Looking at investing in a property and don’t know where to begin? We give you an outline on the most important tips to follow while considering real estate investments.
Why property investment?
This is the first question that you should answer. Are you looking for a property for self-consumption or a property for investment purposes that can yield you good rentals? Based on the answer, you may be able to plan the other aspects like finances, location and configuration of the property-buying journey.
Finances for the property
Investing in a property is a costly affair and you should be financially ready before taking this step. While the cost of the property is just one aspect, there are other peripheral charges associated like stamp duty and registration charges, legal fees, brokerage, GST, maintenance charges, property tax, repairs, insurance, etc. that you should be aware of and calculate while making the budget. Based on this calculation, you may be able to take the decision on the location and configuration that you may be able to invest in.
Also, your financial situation will give you a clear idea on the equated monthly installment (EMI) that you can afford. Before taking an EMI, note that any miss in the EMI payment will be settled with a penalty.
Property location
After finances, location is the next important point in property purchase. This determines the fate of your property in terms of convenience for you and the appreciation of the property going forward. Carefully examine the locations that you may be interested in and which fits right on your budget and the configuration. When you evaluate location, take into consideration connectivity to basic infrastructure like schools, hospitals, banks, railway stations, metro stations, etc. Note that properties that enjoy good connectivity have a good return on investment and also enjoy good rental yields.
Types of property
Before investing check on what kind of property you want to invest in- under-construction, resale or ready-to-move in. Each have their pros and cons and so weigh your options carefully.
If you choose an under-construction property, it is always recommended to invest with a reputed developer. You may also have to pay GST on an under-construction property.
If you are investing in a resale flat, you may have to carefully monitor things like does the property have a clean title holder, any extension done in the house, availability of parking slots, the fixtures and fittings that come along, leakage issues, if any, etc.
A ready-to-move new flat may slightly be expensive but is clearly low on risk than the other two mentioned options. Also, GST is not applicable on ready-to-move new flats.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at [email protected] |
With 16+ years of experience in various sectors, of which more than ten years in real estate, Anuradha Ramamirtham excels in tracking property trends and simplifying housing-related topics such as Rera, housing lottery, etc. Her diverse background includes roles at Times Property, Tech Target India, Indiantelevision.com and ITNation. Anuradha holds a PG Diploma degree in Journalism from KC College and has done BSc (IT) from SIES. In her leisure time, she enjoys singing and travelling.
Email: [email protected]
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