Building Wealth through Real Estate
Investment in real estate can be a powerful financial tool to build wealth for individual investors. It can make you wealthy over time if you invest properly. In today’s real estate market investing in any project is very risky but still worth taking a risk but you have to be very cautious while investing in any project.
Here are some guidelines which you can follow
This is the main point which you have to give extra attention while choosing any project, the area must have a good infrastructure with the availability of frequent public transport, good social atmosphere and sufficient economic activities in the area for further growth and development. If you are investing for the first time then try to invest in Tier 1 or Tier 2 cities only to cover your risk factor.
It is advisable to invest in a project which is in the range of Rs 2500 to 5000 per square feet as this is the ideal price range which can protect you from any further downslide in rate and on the other hand can give you handsome profit in case of the good market scenario.
Before investing in any project you must collect all the information about the projects like
- Property documents
- Government clearance
- Stamp duty
- Super and the covered area ratio
- Home loan approval from banks
- Builder financials
You must check the builder`s credibility and record before making any decision. Research the delivered projects by the builder, if possible go and meet the residents of that project and know about the construction quality of the apartments.
Ask them if the builder has delivered the same thing as promised or there is any change from the actual plan and if there are any changes do builder seeks approval from the buyers before implementing them. In case of delay in the project now builder pay penalty to the buyers. Know about the builder financial details as he has sufficient funds to complete the project on time or not.
Time of Investment
This is another important aspect you must consider while investing in any project, you have to identify the best entry point to invest. There are three stages to do investment soft launch, launch and resale. You have to go through the merits and demerits of these three before thinking about investing.
Apartment Size and Location
Before finalising any deal if possible understand the current property demand of that particular area, if there is demand for 2 bedroom flat then go for it but keep in mind that sometimes smaller apartments do cost less but they are very difficult to resale and try to avoid top floor in high rise as they only add extra cost but normally don’t contribute in resale value.
You must check the sale agreement and read all the points carefully like what are the transfer charges are free if you want to sell the property before registry or what are the charges if you want to sell after possession. Also check that the exact area and all the official cost like parking, club membership or any other added amenities are mentions in the agreement so there is no dispute afterwards.
These are only some useful points which can help you in making any decision but you should also keep an eye on the real estate market so that you can buy or sell the property at the right time. Always remember one thing if you invest carefully the property always give a good appreciation.