Some key factors that should be taken into account before choosing an investment property are:
Investment objective: Before embarking on the search for suitable real estate, an investor should determine his investment objective. Do you want regular rental income or are you more interested in capital gains? Price appreciation is the preferred route for long-term investors with a higher risk appetite who tend to focus on developing locations than those seeking rental incomes who prefer areas with easy access to capital basic services.
Location: Location is the most critical factor to consider when investing in real estate. Amit Wadhwani, Director, Sai Estate Consultants, comments: “Areas that benefit from a solid infrastructure, such as those located near train stations, metro stations, markets, etc. . . This will always produce higher rents and price appreciation. Those looking for rental investments should focus on areas that already have good connectivity and social infrastructure, while long-term investors should explore emerging corridors and suburbs of cities that could obtain benefits. Infrastructure upgrades in the near future.
Real estate segment: Investors should also understand which segment is best for them based on their risk tolerance, budget and overall investment portfolio. Residential, office, industrial and commercial properties each have their own advantages and disadvantages, which must be carefully analyzed.
Property Type: In addition, investors also have to choose between projects under construction and completed, as well as new and resale properties. Wadhwani shares that the ready units have benefits such as zero risk of delays, immediate efficiency, service charge and value-added tax savings (VAT) that can be recorded up to six% in most Indian states. Usually, industry experts suggest that cautious buyers choose properties priced between Rs 2,500,000 per square foot to be protected from price erosion.
Developer: Choosing the wrong developer can be as catastrophic as choosing the wrong location, experts say. Therefore, buyers should conduct proper research on the developer to ensure their credibility and track record. With the entry into force of the Real Estate (Regulation and Development) Act, developers now have increased compliance requirements that will eliminate underground and fraudulent operators. Increased market transparency should make it easier for buyers to select the best developers and projects.
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