Are you confused as where to invest your hard earned money? The best answer that you are likely to get is- Real estate investment. Yes, Real estate is the most profitable investment in India with a dual benefit of rental yield and capital appreciation. The real estate with the highest gain and capital appreciation includes all the prime luxury properties of India. This is quite a challenging task for NRIs with rupee value on the fall. Before investing yourself in Indian properties, here are some tips that you really might want to consider.
The first thing to note is that if the heartiness of the location, its demand and supply are well established and on the growth. Engage in deep research about the location and invest only in markets that are familiar to you for enhanced safety and trust. Go by your instinct and make utmost use of your personal knowledge rather hearing from experiences.
2. The Returns
Rental yield can be nothing but the annual rent divided by the entire property value. Be sure not to let your focus on capital appreciation alone. Rental yield is much more important since it represents the productivity of the price. Experts say that you’re investing at your best if you get a rental yield of at least 11%.
3. The Type of Property
Of the available property options, retail and office spaces are the most popular ones in India. Are you in search of buying a retail space? Prefer looking at high end streets rather ending up with a disastrous purchase of a small shop in a mall. The issue with this is that, there exists no cohesiveness of your shop to mall in attracting customers.
4. The Future Value
If you’re about to purchase a property that is under construction, go for an emerging area, where it is likely to witness price appreciation. In case of a readymade (built-up) property, look in for a developed area so as to get immediate rental income.
5. The Inventory Period
Before you take a final decision, consider the amount of time your developer requires to sell the property at the current market price. 8 to 10 months is considered the efficient inventory period of any market. Bangalore stands quite efficient with 12 and Mumbai takes 44 months.
It is important to check and cross-check your developer’s reputation in terms of quality and delivery before you finalize. Nowadays, people are left more confused and puzzled because of the celebrity endorsements, impossible promises, price hiking as luxury apartments and attractive sales pitches. For your better off, prefer secondary properties as they are completed earlier and kept free from service taxes.
See to it that you don’t risk your money and get stuck with a fruitless investment; hence it is advisable that you better diversify by purchasing space in retail or office buildings or apartments or buying a plot.
8. Look in for Short-term and long-term prospects
Plan for the immediate return from your investment as well its long-term effects. Properties that were on the top once may run down in time and sometimes changes in infrastructure and advent of new organizations can really boost the worth of your property. Hence, put yourself in the safe track irrespective of the market changes.
Cut your deal in your favorite city of India with the above preferences and improve your chances of getting more profit by selecting an ideal property carefully. It’s time to grab the most affordable properties in India! Don’t delay!
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