Come every new-year, the first thing on our minds is a resolution to follow that year. For some, it may be habits to lose, and some others mark the beginning by starting something new. One of the most popular practices that is followed every new year is planning to make an investment. In the never-ending debate on which is a better investment option – Stocks vs Real Estate, the Indian market inclines more towards putting their money in property. So here is a step-by-step guide to making 2019 the year of real estate investment.
Solid Market Research
It is vital to understand the pulse of the market before making any investment. When it comes to real estate the first thing to have in mind would be to choose a good locality to invest in. If one finds a property that is easily accessible and has good amenities like schools and hospitals within its radar, the value of the property increases. Investment is usually made having in mind the returns one can reap. So the ideal thing to do would be to study the market’s requirement depending on your interest to sell or rent your property when in need. Doing proper research with an analytical approach based on financial factors will aid you to pick the best option for you.
Focus on your Funding
There are a number of ways in which one can procure funding to invest in real estate. While some put in their own capital, few are not liquid enough to invest that kind of money. So choosing the right option that will have a good effect on your financial situation requires a good amount of research. For those who require financial aid, there are a plethora of loan options to choose from. Different loan options come with different benefits, and the decision to pick one is left to us based on the credit rate and financial requirement. There are a number of factors that will impact one’s loan eligibility.
Eye for Detail
It is important to pay attention to the details before making an investment. You must analyse and understand how much will go towards the down payment for the property. One also will need to scrutinise the loan documents through a fine comb to check for anomalies or windows for tax benefits. There are several steps to follow to avail tax benefits on home loans. Furthermore, a lot of attention must go towards the property that you are set to invest in. If it is a new property, it is essential to do a background check on the builder and the locality. The credibility of the builder has a big role to play when you consider selling or renting your property for returns. Investing in a pre-owned property, on the other hand, requires a thorough check-up with a magnifying glass. These routines must be practised before signing any document that validates the investment.
Picking a Category
The main focus for anyone who invests in real estate is enjoying the returns it offers. Depending on what suits one’s needs, either a commercial or residential property can be chosen to invest in. Irrespective of the category, investing in a new property is a good idea. The metros and Tier-2 cities have been seeing an influx in residential investment mainly due to migration and urbanisation. These new properties get occupied in no time. Additionally, pick the type of property you want to invest in based on your lifestyle and preferences. From state-of-the-art villas to new-age apartments, there is a multitude of options to choose from.
Investing in REITs
With the introduction of Real Estate Investment Trusts, one can now be a part of the investment scene without shelling big bucks on the property. These trusts are like Mutual Funds. By investing in REITs the money is distributed among all the properties that the trust holds. This way, investors will not be investing in physical property as such. As in mutual funds where the dividend is shared among all the stockholders, in REITs, the rent from the property is shared among all the investors based on the magnitude of their investment.
Bearing these steps in mind, one can make investing in real estate the new practice they start this New Year. Following these guidelines will not only aid in spotting the right property to invest in but also help plan the budget.
At Lancor, we aim at providing the perfect residential experience for all customers. Lancor homes have state-of-the-art security, plethora of amenities and are located in easily accessible areas. Visit Lancor to begin 2019 by investing in your dream home.