Investing in real estate can be a daunting thing to do – especially if you are relatively new in this area. This is one investment which comes with a favorable risk/ profit profile. Here are some points which you need to keep in mind to make an intelligent investment in real estate.
1. Location of the Property
Location undoubtedly is the most important thing one needs to keep in mind before investing in a property. See to it that the property meets all the major property valuation factors like – closeness to the basic amenities, nice locality and neighborhood, safety etc.
It is also recommended that you conduct an in-depth check-up of the intended ownership, type and usage of the neighboring areas and the free land in the locality. You surely do not want the present open land at the back of a residential building to be a noisy manufacturing unit in the future. This surely will hurt the value of your residential property.
2. Valuation of the Property
This is one of the crucial things you need to take care of. Valuation of property consists of listing price during sales, investment analysis, insurance premium, taxation etc. Valuation of the property will surely give you a fair picture of not only what the property is worth at the time you intend to buy it, but also how much will it be valued at in the future.
3. Investment in New Construction or an Established One
Every real estate investor deals with this dilemma. Usually when you choose a new construction property you get attractive pricing, clear documented amenities and the freedom to customize the property as per your taste. But the major risks involved are that there are high chances of delay in possession, increase in the cost of the property as well as lack of awareness of the neighborhood.
While on the other hand, an already established property is easier to possess and gives you a thorough knowledge of its total profile. At the same time you need to be cautious about the ownership, legal documents and analyze how much its resale will actually reap you.
All in all you need to conduct a thorough check-up in both the cases to avoid hidden charges and illegal possession of the property.
4. Finance
Though it has become easier to secure loans for purchase of property, there are many pitfalls which you need to keep in mind as real estate financing is exposed to higher risks. Thus keeping in mind your present and expected future earnings and paying capabilities you must consider:
With these factors in mind, you can stay assured that you have invested in the right real estate property and can easily bring the risk factors which are so inherent in the real estate business.
MJR Builders Pvt Ltd, a name to reckon with in the realty industry, was established with the prime focus of developing next-generation Residential and Commercial spaces.
1. Location of the Property
Location undoubtedly is the most important thing one needs to keep in mind before investing in a property. See to it that the property meets all the major property valuation factors like – closeness to the basic amenities, nice locality and neighborhood, safety etc.
It is also recommended that you conduct an in-depth check-up of the intended ownership, type and usage of the neighboring areas and the free land in the locality. You surely do not want the present open land at the back of a residential building to be a noisy manufacturing unit in the future. This surely will hurt the value of your residential property.
2. Valuation of the Property
This is one of the crucial things you need to take care of. Valuation of property consists of listing price during sales, investment analysis, insurance premium, taxation etc. Valuation of the property will surely give you a fair picture of not only what the property is worth at the time you intend to buy it, but also how much will it be valued at in the future.
3. Investment in New Construction or an Established One
Every real estate investor deals with this dilemma. Usually when you choose a new construction property you get attractive pricing, clear documented amenities and the freedom to customize the property as per your taste. But the major risks involved are that there are high chances of delay in possession, increase in the cost of the property as well as lack of awareness of the neighborhood.
While on the other hand, an already established property is easier to possess and gives you a thorough knowledge of its total profile. At the same time you need to be cautious about the ownership, legal documents and analyze how much its resale will actually reap you.
All in all you need to conduct a thorough check-up in both the cases to avoid hidden charges and illegal possession of the property.
4. Finance
Though it has become easier to secure loans for purchase of property, there are many pitfalls which you need to keep in mind as real estate financing is exposed to higher risks. Thus keeping in mind your present and expected future earnings and paying capabilities you must consider:
- Which type of mortgage loan suits you the best – fixed rate, adjustable floating rate, interest only or zero down payment.
- Always look for best deal – one which has low interest rates, lower processing charges, insurance premiums etc.
- Most importantly be clear on all the terms and conditions as well as other charges levied by financiers.
With these factors in mind, you can stay assured that you have invested in the right real estate property and can easily bring the risk factors which are so inherent in the real estate business.
MJR Builders Pvt Ltd, a name to reckon with in the realty industry, was established with the prime focus of developing next-generation Residential and Commercial spaces.