Are you new to the real estate market and thinking about investing in a property? If yes, then you might get confused regarding how to choose the right property for real estate investment in India! Well, it comes as no surprise that real estate is one of the most lucrative avenues for investment purposes. However, it is crucial to deeply understand the market dynamics and select the right property in order to ensure that your investment yields the expected return.
In the last decade, real estate as a popular investment asset has seen extraordinary growth. This is the sole reason why Indians continue to find themselves attracted to the real estate industry despite the complex nature of real estate investment in India. Many realty experts suggest that creating wealth via property investment requires a thorough understanding of the market, preferred locations, options and pros and cons associated with each. Choosing the right property perfectly suited to your requirements is of utmost importance for making a profitable real estate investment in India.
Here's a list of factors to consider before choosing the right property for investment:
1. Look for profitable areas
As you know that capital growth is one of the most important factors in property investment in India, so always look for areas and locations that are expanding. In other words, we can say always look for profitable and growth areas that are expanding in terms of the economy, population and local infrastructure. This is why cities like Mumbai, Chennai, Delhi and their surroundings are in such high demand as investment cities in India.
Also Read: 6 Important Things to Keep in Mind Before Investing in Real Estate
2. Opt for a tight squeeze
Another way to choose the right property for real estate investment in India is to choose for a tight squeeze. When it comes to vacancy rates, always look for a tight rental market. For this, you can review the latest vacancy rate data on your opted suburb. One thing to note is that investing in areas with low vacancy rates significantly restricts your chances of an empty building between tenants.
3. Invest where you know
Investing where you know is another great hack to the right property investment in India. But this does not mean that you invest in your backyard. Instead, you must get to know your potential investment locations the same way you know your house neighbourhood. Become a realtor expert in researching the area, from capital growth rates and council spending to demographics and vacancy rates.
Also Read: Buyers Guide
4. Opt for low maintenance properties
For a lucrative real estate investment, always choose low maintenance properties. This means that always look for real estate ready to rent out immediately unless you have another big plan to add value through renovating. For example, houses with large gardens and pools necessitate time and care, whereas a similar house on a smaller block with a flat and grassed backyard is much easier to maintain.
5. Look into the future
Looking into the future and then investing in a property in India is another great idea to help you choose the right property for investment. Figure out what plans are in the works for a particular area so that you can determine what the location's future looks like.
For this, you can either get in touch with the local council for more details or check the government websites that have information on infrastructure project proposals online. It is also recommended to keep an eye on any residential developments that could be going up near basic amenities such as shopping complexes, healthcare facilities, schools etc.
6. Know what your tenants want
Last but not least, you must know what your tenants want. Always choose a real estate that appeals to the home buyers who are actively looking for rental homes in your area. For instance, a small unit might be more affordable than a house, but if the local market is heavily composed of families, your investment property won't appeal to anyone. It will also be to your benefit if a home has useful amenities for the target market, like proximity to public transport and off-street parking.
Opting for the right property for investment in India requires a lot of research, and it is important to study up and glean the facts from as many sources as possible. It is also advisable to get advice from experienced professionals and other experts in the real estate industry. Also, we at Clicbrics can help you find the right property for investment in the city of your choice.
So, get in touch with us now and get ready for one of the best real estate investments in your life with us.
Also read: Investing in Real Estate Young - Common Mistakes and How to Avoid them