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5 Tips To Make The Most Of Your Real Estate Investment

5 Tips To Make The Most Of Your Real Estate Investment

5 Tips To Make The Most Of Your Real Estate Investment
It is advised to invest in localities that are not well-established as property here costs less than property in established area and second, the chances of appreciation of property value is higher than a developed area. (Dreamstime/Kittichai Kasemsarn)

Real estate is widely considered a safe and profitable long-term investment option, especially among Indians. According to author Peter Koulizos, and many like him, investing in real estate is safer than investing in stocks.

Besides, it is a much simpler to find the right property that would give you good returns in the future -- especially today, with the process of finding and buying property possible to be carried out online -- than spotting, researching and predicting a stock's performance. However, the market does face liquidity and other risks from time to time.

To keep at bay some of the risks involved in property market as an investment bet, MakaanIQ lists a few tips on making the most of your investment:

Right location

Choosing the right location is your first step towards good returns in the long term. Before investing in property, the home buyer should study the infrastructure of the area, both existing and planned. A good infrastructure ensures good returns. A better idea is to go for localities that hold promise but are not yet established property hotspots. The cost in such places is relatively low, offering an upside for the future. The chances of value appreciation is much higher in such properties.

A good locality also has access to various amenities and enjoys good connectivity to other parts of the city.

Reduced amount of mortgage

When investing in a property, it is advisable that you fund the bulk of the investment yourself and keep the loan bucket light. A reduced amount of loan results in reduced additional costs, as well as fewer risks.

Enhanced rental value

If you are not buying a property for residing, rent can be a good source of income that you can earn from the property.

To get a good rental value, keep the property prim and proper. For instance, keep it equipped with latest appliances, have well-painted walls, well-maintained bathrooms and kitchens, among others.

Areas that can withstand market uncertainty 

At times when the market is facing uncertainty, invest in areas that are still looking up. These are likely to be least affected by uncertainties in the market. These could be the localities where population is still rising or where the government plans to invest in near future for infrastructural development.

Maintain funds & analyse profitability

When planning to invest in property, ensure that you maintain a proper cash flow. Analyse the income you would earn from renting the property, the rise in value of property, and tax benefits you would get. Also, see if you could make the property more valuable by renovating it.

Last Updated: Sat Jun 18 2016

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