India A Preferred Destination For 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.

Investors from foreign shores are seeing India as a preferred destination in the Asia-Pacific region for its growing real estate market. PwC, a leading audit firm, reported that 50% of the investment came from foreign shores in 2014 and that number has risen in 2015.

This growth has been seen in the commercial sector of the real estate market in India. The rise in the attractiveness of commercial properties has been due to a range of measures taken up by the Government, one of which is the reduction of the minimum size of built-up-areas which can be purchased from 50,000 square metres to 20,000 square metres. Such actions are attracting foreign investors who don't want to purchase large areas or spend a lot of money to invest into the Indian market.

The sectors having a bright future in 2016

Commercial properties were an attractive option for most real estate developers in India, be it within the country or abroad. Based on reports from a leading real estate marketer in the country, while residential and office space might be attractive to investors and could see a growth in 2016, retail has already seen a lot of long-term investment from Japanese and Chinese investors, and could grow further in the future.

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.

This section of the industry could see an investment that matched the $8 billion brought into the real estate market in 2007, one of the highest amounts ever recorded in the Indian market. However, the concerns over the low sale of residential properties could rectify itself in 2016. The current year might not have seen a stellar growth in this segment of the real estate industry, but sales are slowly picking up in few of the metros.

Property sales have picked up in cities such as Mumbai, Bengaluru and Hyderabad and the introduction of various schemes and attractive deals have made residential properties an option for real estate investors. Kolkata is another city which seems to be picking up the pace in terms of residential real estate offerings.

The city didn't record the best results when it came to premium residential properties, with sales falling in the first half of 2015. There is a silver lining however, with property prices falling, investors could take a chance with these premium apartments and residential properties. New Town has seen a lot of construction of residential and commercial properties in Kolkata but another region is growing as an attractive investment option.

Garia: The rising star for Kolkata?

Affordable housing could be the key for Kolkata. Garia is witnessing a large number of upcoming residential projects that will benefit from the improved connectivity thanks to the extension of the metro. Apartment complexes are mushrooming in this region due to reduced land prices leading to a lower cost of finished flats or apartments. Garia is seen as an affordable area for those who want to move closer to the city, without spending a lot of money.

The increasing number of projects in Garia and New Garia, an extension of the region, will certainly attract a lot of buyers and could lead to a turnaround in the residential property market in Kolkata.

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: October 26, 2017 — 7:19 am
Property Investment Buy & Sell Guide © 2017 Frontier Theme