What matters when you decide to invest in real estate? The right knowledge and the ability to apply it. With the right investment, there can be massive profits in real estate, else the property where you have invested can become a curse and loss for a long time.
Another significant question is, how to invest in real estate in India to gain profit without failure? The tips to guide your investment are divided into two broad categories - pre and post-investment.
1. Gain insight into the market and research on your own
If you wish to research on your own, always go with multiple properties falling under the same bracket, offered by various developers. Compare the price, location, amenities and other facilities being offered to you. See which one suits you the best and check if the properties have any pending taxes or are disputed by any chance. Acknowledge the ‘why’ of your real estate investment and work according to your purpose. It is advisable to keep simple and replaceable furnishings if you intend to rent the property that you have bought. On the other hand, if your purpose is to re-sell the property, keep a check on the amount of people's preference for the specific property and property's re-selling value.
2. Seek expert guidance and maintain your budget
Do not be fooled by the glitz and glitters of the market offerings. Find an expert who has an unbiased review and can help you see the pros and cons of the investment. Be very clear with your budget and make sure not to exceed. Out of the options, choose the one that offers the maximum of what you want. It often happens to let yourself loose when it comes to spending, and you may end up spending a little too much on a property you wish for. Be thoughtful while consulting real estate agents as they most of the time seek to persuade you to spend more so that they earn a higher commission.
3. Take baby steps
Take wise decision by starting out small. Avoid over-estimating and going beyond your limit. Make sure that the mortgage amount that you will have to pay back is within your range.
4. Educate yourself
The realty market is a dynamic system. Learn the basics even before making your first investment. Update yourself with the current trends so that you know how to safeguard from a bad investment and lower returns while minimizing the risk at the same time.
5. Financial management and renting property
Track the record of all the money that goes into your investment along with the extra expenditure. Making a note of your profits and the same amount you re-invest in your business. This practice can enable you to understand the growth you have achieved. For those who have rented their property should be thorough with their tenants’ background to make sure the house goes in the right hands.
6. Stay prepared and invest in more
Once you have purchased a property, keep a budget for renovation, taxes and more. After the first purchase, search more properties you can buy and rent. Keep making smaller deals for some side income that could help you to cover the loss in the future.