Top 5 Tips for choosing the right property for investment
Today we provide a top 5 tips for choosing the right property Residential property never loses its appeal as an investment bet in India. At the present time, the housing may not be as attractive as equity, but still, Indian believe a lot in buying or investing in property. Just for the return on investment.
There is tremendous psychological value to owning a residential property. It is the financial security for the owner’s family. Property always retains its value. Some people use their property for a living and some people only to earn rent. This is the reason why second homes are so popular in the country.
However, we cannot make a quick profit from residential property, but we Indians are still confident to invest in property. In previous years, Indian residential investors would try the western approach of ‘flipping’ properties to buy low, and sell high within a year. But it doesn’t work.
Gone are the years when the Indian housing sector was less regulated, and many parts of the country were centers of speculative buying and selling. Today such investors have almost completely disappeared from the market.
As is the case with mature markets in the West, investors have become more realistic when it comes to their expectations of property investment returns. Previously, they could often achieve an annual ROI of over 100 percent in the property market.
Today, supply-demand adjustments and stricter regulations keep housing prices under control. You can expect capital growth of more than 4-5 percent per annum on good properties in most cases.
Apart from the residential purpose, one of the major reasons to invest in residential property is to earn regular rental income. If you are buying a second home for the purpose of earning rent, it is important to understand which type of home will be most in-demand among tenants.
So let us tell you some important things today so that you will be able to choose a good property. Feel Happy!!
Here are five qualities that can generate good rental income:
The most important quality of a good rental property is location. The property should be located close to or substantially attached to the city’s major office districts. And the rental income increases when your property has near road, metro, market connectivity.
If we talk about Delhi, Mumbai, Pune, Bangalore, there is two- and three-BHK flats that are highly demanded because generally they are affordable, and are the most preferred property by middle-class tenants. There is no sense in investing in a bungalow or villa located in an area where there is no demand for homes that are too expensive to rent. If you are looking to invest in a large luxury property, look at the areas where people can rent this type of property.
Property price is also a big factor in making a successful investment in residential real estate. Property price is neither very high nor much lower. Because the price of the property is cheaper, then there is a high chance that the rent on your property will be less than your expectation, and If you paid too much for a property, you will find it very difficult to earn enough to cover your initial costs and make a rental profit. We should compare the value of the property now with where it was 4-5 years back. If you decide to sell the property after 5-6 years, you would like to profit from the sale.
One should take a good look at the infrastructure in the vicinity of the property: everything from road and rail connectivity to the availability of schools, hospitals, and shopping districts. Think like a tenant and ask yourself the right questions to decide whether a property can yield good rental income.
Some projects and properties are more attractive than others even in the same location, as they have better amenities and facilities. A 2-BHK apartment in an integrated township offers a better lifestyle than a smaller project counterpart. A project with a clubhouse, a swimming pool, and a jogging track is more interesting to the tenants than the lack of such facilities.