THE MANTRA FOR GOOD RETURNS FROM REAL ESTATE
When looking at investment options, there are many instruments available: mutual funds, stocks and shares, fixed deposits and of course, real estate. Real estate is considered a safer option due to lower risks, tax benefits and guaranteed returns, both short term and long term.
Here are a few tips to ensure good returns from your investment in real estate:
Select a growing location:
Always select a location that has higher growth potential. The location must not only have good infrastructure but also amenities like schools, health-care facilities, shopping outlets and so on. The scope of future development in such locations can increase the chances of your property growing in value.
Going for township projects with amenities like school, retail shops, temples, open green spaces, safety and security for all ages etc. present within the complex, will be very attractive for tenants and end users. Such projects can be found in places like Neral & Thane where there are many infrastructure developments proposed have been sanctioned.
Because of grand development plans in the pipe-line, you can expect like-minded people investing. Every couple of years new and higher segment of people should look at buying in such locations.
Community and cultural development along with strong social fabric of the location should also have scope to develop in the coming years for a wholesome growth.
Scout several investment properties available in the area before shortlisting your top picks for investing. Researching the average prices and the developments happening in the neighborhood will help in understanding market dynamics of the location your are looking at investing in.
For example: In a city like Thane, the sanctioned metro route will result in positive returns on any investments made. If there is a metro station nearby, the property value will increase further more.
Projects by reputed developers with all legal documentation and experience of delivering Grade A development should always be preferred. Check the Livability index of the location too. The lesser the pollution, more open spaces & greener landscapes; the higher the index would be.
Financing the property:
Whether financing through a loan or on your own, selecting the method of financing is of utmost importance. With various schemes available today from both developers and banks, make the selection by deciding what is most suitable for you.
With various subvention schemes available now and offers like 0% down payment or deferred payment options, it has become easier to arrange for the needed finances.
Maintaining the property:
A well presented property is sure to attract more tenants and will also increase the selling price. For this, regularly check your property for any possible damages and need for repairs.