A property that provides good returns on investment is an important consideration for people who want to invest in the real estate sector. However, many of us are often confused over which property can deliver long term ROI. Here are some tips to ascertain, where to invest money to get good high returns.
How to determine home value?
If you are clueless on how to determine your home’s value, you’re not alone. You’d be surprised know that there are many property buyers who are clueless about the real value of the home. One should not look for the cheapest property options on the market because it is quality that determines home value. Here’s how to educate yourself about your home’s market value:
As a serious buyer, you will always take a critical mental note on three aspects:
- Locations and local market conditions.
- Brand value.
- The availability and quality of facilities and amenities offered in the project
The importance of the location of the property
Location is the most important factor for profitability in property investment. Proximity to local amenities, peaceful conforming areas, good/safe neighbourhood, scenic views, etc. are some of the major factors for residential property valuations.
In major cities, Central locations are usually expensive because it offers great accessibility to many important parts of the city like the CBD (central business district) and SBD (secondary business district). Such areas have the presence of the multinational offices and generate a vast cross-section of jobs, from highly-paid jobs to more modestly-paid jobs. This is what makes owning a property in central locations very desirable and it always plays a role in real estate appreciation.
Those who are working in IT/ITeS companies they prefer buying a property in a peripheral location that connects to an IT hub and manufacturing belt. As a result, many city’s outskirts have become attractive for home buyers and they are far less expensive. Unfortunately, such locations attract all kinds of developers – from those who have a reputation for creating the best residential projects, to those who are inexperienced. This is where the brand value of a builder plays an important role.
Brand value and quality assurance
With a lot of residential supply available in the micro-markets, property buyers are spoilt for choice as many real estate developers are offering discounts, freebies and attractive financing schemes. Property buyers are spoilt for choice as realty firms are offering discounts, freebies and attractive financing schemes. However, buyers should buy a home which performs major functions of offering comfort and security. Reputed developers understand the importance of comfort so provide these as part of their standard value offering.
Facilities and Amenities
In today's fast-paced world, we all want to live in a home which not only not serves a purpose of shelter but also give healing and rejuvenation from stress-free life. A clubhouse, swimming pool, gymnasium and kid’s play park are no longer luxuries, but the basic amenities a home buyer can and should expect. Facilities and amenities add values to property and homebuyers should always look for modern amenities and facilities that provide a decent lifestyle and help in getting the best return upon selling in future.
Owning a home is not just for the present and future comfort but also important for investment growth. So for property buyers, homes in good locations, build by renowned builders with the presence of amenities and facilities, will yield better price appreciation always and potential rental income too.