How To Incur Good Return On Real Estate Investment

Buy sell Property & Real Estate Investment Guide

Buying Property Tips#1: Choose the Right Location
Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.
Buying Property Tips#2: Study the Local Market Dynamics
It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.

Investment in residential property needs to meet certain parameters for an effective Return on Investment (ROI). Essentially the location should have the social infrastructure, public transport accessibility and connectivity and the sufficient economic activity to sustain growth. In order to avoid investment risk, one must restrict one's investment to emerging areas of the city. As Pune is witnessing a change in the real estate market, areas like Hadapsar, Viman Nagar, Phursungi, Hinjewadi, Balewadi and Talegaon are becoming hotspots for investment. Be it a 1 or 2 BHK in Talegaon, the return on investment will definitely be on the brighter side. Here is a list of guidelines which will help one for a sound investment.

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Buying Property Tips#3: Choose the Right Property
Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.
Buying Property Tips#4: Do the Math Properly
Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.
Buying Property Tips#5: Consider Additional Expenses
When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.
  • As weak market can result in poor construction and design, it is essential to check the quality of the development.
  • To choose the best entry point, property cycle needs to be understood.
  • The investor needs to have a clear knowledge about the capital gain and the higher stamp duty implication at the time of transfer of the property from the builder.
  • The investor should monitor closely the documents, project development plans and all illegal approvals.
  • The builder's arrangement of all the finances for the completion of the project must be verified.
  • Small apartments may cost less, but sometimes it is difficult to sell them. So, the size and the area of the property need to be checked thoroughly.
  • It is extremely essential to verify the builder's credibility and track record.
  • The completion time and the delivery of the apartment must be clearly mentioned by the builder.
  • Investors should avoid buying an apartment on the top floor, as these add some extra cost due to floor-rise concepts.
  • In case, one wants to sell the apartment during the construction or prior to registration, it is important to understand the sale agreement.
  • The investors should keep an eye on the market status and sell the property at the appropriate time in order to earn a good return.
  • Within every city lies the opportunity of good capital appreciation, however, it also depends on the reputation of the developers, the quality of the development and the strategic location. Well, if you are seeking for a good investment opportunity, then the new residential projects in Goa by some of the reputed builders can fetch a good ROI.

    Buying Property Tips#6: Inspect the Property
    To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.
    Buying Property Tips#7: Pick the Right Financing Option
    While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.
    Buying Property Tips#8: Invest through Equity
    One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.
    Updated: March 22, 2018 — 12:45 am
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