Investing in real estate can be very tricky
especially if you are a first-time investor. Finding the right property that
fits your budget is a challenge that most of the buyers face. The real estate
market in India is flooding with varied type of properties ranging from land,
apartments, villas and commercial spaces. Experts opine that conducting a
market study and background research can help you a lot to zero in on a perfect
property deal. So the question is how to invest in the right property within
your budget?
Let us discuss some important aspects based on
this.
The first and foremost step in property
investment is to find an ideal location that you are interested in. It could be
your native city or a place where you are working, location is an important
factor that decides the worth of your investment. Remote localities will
usually be cheaper than localities within the city with rapid development. So
depending on the purpose of your investment choose a location which is right
for you. For example, if you like to stay in a peaceful and verdant area away
from the noise of the cities, then consider buying a home or plot in the
outskirts. If you like to have a modern lifestyle close to your workplace
enjoying the city transport facilities then go ahead and invest in a budget
apartment in your favorite city.
The second step after deciding the location is calculating
your budget to check how much money you can afford to invest in the new
property. If you are a first-time homebuyer, then it is better to consult a
qualified and trusted financial advisor to know your bank loan eligibility and
related criteria. Once you have calculated the budget, then start exploring
different options which fit within the limit. Always try to choose an
investment which offers high value for money and serves the purpose that you
envision. It is better to start small as spending beyond your limit can invite
huge financial burdens in future. While analyzing the budget, do not forget to
include the additional expenses like registration charges, tax, interior
styling, furniture, etc.
It is recommended that you conduct an in-depth
analysis of the prevailing market trends to save yourself from any possible
real estate gimmicks. Being well informed on the current market trends, prices,
interest rates, and development will allow you to recognize the current market status
and plan accordingly. If you see that the property prices are rising fast in an
area, it is better to invest soon to gain great return on investments in
future. Compare different types of properties in the same locality to find out
the pros and cons of each. You should not blindly trust any agent or broker
that you meet. Always seek a second opinion from a certified property advisor
before entering any financial deal. Checking the legal clearances is crucial
while buying a property lest you may end up in serious trouble. Keep a check on
the prevailing real estate rules put forward by the government so that you are
well informed about the necessary legal formalities. For example, in India
properties should now be registered under the RERA Act which protects the
rights of the buyers and provides more transparency in the transactions.
Finding the right property is a confusing affair
as you may find plenty of properties of different sizes and types in your
chosen location. Land prices can vary depending on the location, size, age and
type of property. So it is important to decide what type of property you want
to invest in. Buying ready-to-occupy apartments is a great way of earning
monthly income as you can rent it out as soon as you buy the property. Another
affordable investment option is investing in an ongoing project. Ongoing
projects will be priced much lesser than the price of completed projects in the
city. Moreover, you can get homes equipped with state-of-the-art modern amenities
if you book a flat or villa in an ongoing project. Also, prices will vary
according to the number of bedrooms, amenities and quality of materials used.
Builders in Kerala like Confident Group offers apartments and villas at varied
prices ranging from luxury to budget segment.
Another factor that you may overlook during the
process of property search is to know your actual purpose or need with the
purchase. Different people will have different intentions for investing in real
estate. For some of you, it may the dream home that you want to buy and for
some others, it may be a profitable investment for the future. So understanding
your need is most imperative in the case of property investments. Also if you
are choosing a house, you may have some aspirations like having more space, a
garden, play area, security and much more. Most of the modern apartments and
gated villas will provide a range of lifestyle amenities that you and your
family can make use of. Plan all these ahead and while calculating the budget,
choose whichever specifications are important for you. Instead of blindly
buying a property, try to choose the one that satisfies all your needs.
Last but not the least, clearing your existing
debts will help you to achieve your dream of buying the property you desire.
While applying for a home loan, banks will analyze your credit score or debt to
income ratio to check your creditworthiness. So if you have a lot of pending
debts, it is unlikely that you will get a loan easily. Try to maintain a
positive cash flow in your account so that paying EMIs will be easier for you.
You can become a successful real estate investor if you know how to manage your
expenses.
We hope that this article has given you a good
insight about how to make the right property investment in your budget.
Remember that staying up-to-date in the realty market trends will help you
become a smart investor. A property can be a valuable asset provided you invest
in the right one at the right time. So why wait, make the most of this
opportunity by investing in an apartment or villa in your dream location.
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