How To Invest In Indian Real Estate?

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As individuals in India start earning, they are often given financial advice from people everywhere. They are told to maintain their expenditure, save as much as they can for the future and are instructed to invest. Investments usually range from buying shares in the stock market to investing in some new hot startup or an app that is turning heads. Apart from these avenues, investments can also be made in real estates and if done correctly investments can take one from rags-to-riches.

Investing in real estate is no more a niche for the rich. The common people can also invest in properties they fancy with their limited capital through fractional ownership in Indian real estate. Fractional ownership of a property refers to individuals coming together and buying the shares of a place and co-owning the property. Thus, the burden of investing in real estate will not fall upon one person, and this will also provide an opportunity for others to invest in and from it. The rental yield or fixed income will grow in time. Usually, the growth of the fixed income goes at par with the inflation. Capital will also appreciate owing to growth in demand and India being an ever-growing population, the demand for real estate will only keep rising.

Points to consider before Investment in Real Estate

Investing in real estate is a huge step for someone. These kinds of large investments are more tied with hopes for massive returns than any other investments thus, before a property investment in India is made, several factors must be considered to affirm the decision.

●      Patience

In life, patience is a remarkable quality to have. It helps in taking the right decision after assessing the options. In real estate investment, too, it is very important to stay patient. Purchasing real estate is time-consuming, the whole process takes days to successfully complete. Sometimes, showing patience helps in getting a better deal while hastening the process seems desperation and the seller can demand more money. Builders can also delay a project, making it a standstill investment without any return, and that is also a test of patience. Patience with a hint of optimism should be the mantra for property investment in India.

●      Research

Research is one of the most important things to do in order to invest in real estate. Investing in real estate can be very complicated and agents will try to get their commission in any way, thus it is absolutely necessary to gain as much knowledge as possible in a property before putting money on it. Factors like what facilities are offered by the property, the history of construction and the raw materials used, and the location of the property should be looked into as they ensure the quality of returns from the investment.

●      Check the Official Papers

The official papers of a property are of utmost importance. Sometimes sellers are very tricky and someone who is unacquainted with real estate can easily be duped by them. Purchasing a property without proper papers can result in long and tedious court cases or litigations, essentially making the investment worthless, therefore all property papers must be ratified by legal experts in order to validate them. If a property is being sold below the market rate then it could very well mean it has some problems, essentially legal issues.

●      Know the Market Rates

The government provides investors with a valuation guide to help them make informed decisions. Knowledge of the market rate can prevent a potential investor from being scammed by paying more than what the property is worth. Market rates also help to determine the expected returns from a property.

●      Thorough Financial Knowledge

It is incredibly important to know where one stands financially before making any major financial decision, especially a real estate investment. Although banks are prepared to provide loans, the interest factor and the rate of return from the investment must be calculated. Fractional Ownership in Indian real estate is also permitted for those who are not financially able to purchase real estate directly.

●      The Art of Negotiation

Negotiations play a major role in property investment in India. The Indian market is such where people seek the best product for the least price. Indians investing in real estate always look for great deals that will make them wealthier and knowing how to negotiate can help investors save money and get additional perks such as furniture, parking spaces, etc.

●     Chat with the Neighbors

Last but not the least, talking to the neighbors is a very vital part of buying a property. Some above-mentioned points can be covered from a simple chat with the neighbors. They can help the investors gain an insight on the locality, learn about the ongoing market value and the scope of future prospects for the property. Since the neighbors aren’t salesmen working for commission, investors can get the real picture of the property.

Although real estate investments are generally safer, yet they are not completely risk-free. Legal issues and property disputes are very common in India owing to several siblings or joint families, thus property papers should be thoroughly checked. Another hurdle in real estate investment is delays in projects. Builders can often delay projects and charge for more money, thus reputed developers should be contracted.

Property investment in India is a dream for many, and this dream should be realized keeping the above factors in mind.

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