Real estate is one of the most profitable investment options. However, understanding market trends and selecting the correct property are critical to ensuring that your investment provides the required return. Real estate, a popular financial asset, has grown dramatically during the previous decade. This is why, despite the complexities of real estate investing, Indians continue to be drawn to the industry.
Experts say that earning money through real estate investing necessitates a thorough examination of the market, possibilities, desired locations, and the benefits and drawbacks of each.
Choosing the ideal home for your requirements is critical to generating a profit in the real estate market. Before selecting a home for investment, consider the following crucial factors:
The goal of the investment
Before beginning the search for a good property, an investor must choose his investing goal. Is he more interested in capital gains or regular rental income? Price appreciation is the favoured path for long-term investors with a higher risk tolerance who choose developing places over those seeking rental income who prefer areas with easy access to basic services.
When investing in real estate, the most important aspect to consider is location. "Areas with good infrastructures, such as those near railway stations, metro stations, marketplaces, and so on, would always offer greater rentals and price increases," says Amit Wadhwani, Director of Sai Estate Consultants. Those searching for rental investments should concentrate on locations that currently have adequate connectivity and social infrastructure, while long-term investors should look towards new corridors and metropolitan outskirts that are anticipated to get infrastructure upgrades in the near future.
Investors must also choose which category is best for them depending on their risk tolerance, budget, and entire investment portfolio. Residential, office space, industrial, and retail buildings all have advantages and disadvantages that must be carefully considered.
Type of property
In addition, investors would have to decide between under-construction and completed developments, as well as new and resale homes. According to Wadhwani, ready apartments provide advantages such as no danger of delays, quick rental income, and savings on service tax and Value Added Tax (VAT), which can equate to savings of up to 6% in most Indian states. Under-construction houses, on the other hand, can be acquired at reduced rates and benefit from tax breaks on home loans, but they come with significant risks due to the volatile nature of the market. Plots are another appealing investment choice due to the possibility of better capital appreciation, instant possession, reduced costs, and fewer hassles. Plots, like any other asset, have drawbacks, the most significant of which are no tax benefits, no bank financing, and no short-term returns.
Buying at the proper price is an essential component of achieving excellent capital returns when investing in real estate. Investors must select a home that satisfies all of their requirements while remaining within their budget. According to experts, although the cheapest regions are likely to see delayed growth, those that are currently costly have the least potential for future price gain. Typically, industry experts advise careful purchasers to look for apartments priced between Rs 2,500 and 5,000 per sq. ft in order to protect themselves from price erosion.
According to experts, hiring the wrong developer might be as disastrous as picking the incorrect site. As a result, purchasers must conduct appropriate research on the developer to determine their legitimacy and track record. With the implementation of the Real Estate (Regulation and Development) Act, developers now face increased compliance requirements, which will filter out fly-by-night and fraudulent businesses. The increased market openness is intended to make it easier for purchasers to shortlist the best developers and projects. Agarwal Constructions provides you with a safe investment avenue in real estate. Check out our 3 BHK Duplexes and Bungalows, and 4 BHK Duplexes and Bungalow projects to make your dream home a reality.