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Five tips to be a wise property investor

Five tips to be a wise property investor

Five tips to be a wise property investor

As property market is an unpredictable market and a real estate investment requires the involvement of a huge sum of money, one should be careful while investing and should know the scope of appreciation. In this article we give you some tips for real estate investment.


Know your area : Investing in a property is an important decision and therefore one should choose to invest in a right locality that offers scope for development, appreciation and convenience. The biggest advantage of buying a home in the the right locality is convenience. The location should be near to office, school for kids, hospitals, markets and entertainment facilities for most members of the family. If you cannot satisfy every member, try to find a location that meets the requirement for majority. Also make sure that the location offers good connectivity to important places like central business district, railway station, airport and medical facilities. Also, availability of services like Schools and Hospitals etc is another important factor that should be kept in mind before investing in an area.

Be safe than late: With many realty projects getting delayed,a background check of the developer is a must. See if the developer is facing any liquidity crunch and research on the past record of the developer.Before making any kind of real estate investment, the buyers should check the past record of the developer. Buyers can also join multiple online forums where buyers like them provide information on developers.

Take advice and do proper Research : Earlier people used to engage property agents and help of relatives and friends for advice on buying/ selling/ renting any new or old property. However, this led to scope of error but now many property sites offer new age tools that help people to gauge price trends of the area. Makaan.com also offers tools such as Makaan.com Property Index (MPI), Makaan.com Buy Vs Rent Index (MBRI), Price Trends that uses complex algorithm to offer correct information and intelligence to help property seekers and real estate industry players to know the latest price trends. Makaan.com has also come up with ‘Invest tab’ to help investors choose the right investment property based on past rate of appreciation in a locality/ city.

Banking and taxation : Most people in India apply for a loan before investing in a property. Before applying for a home loan, ask about all clauses of pre-closure, type of rate of interest – i.e. floating or fixed, re-financing, re-payment schedule, etc. One can also take professional advice before taking a home loan. Also be aware of the tax implications while investing and selling a property.

Think about exit routes : In the present scenario where supply is at an all time high against demand, there are simply no-takers in the market. Therefore, investors might find that their investment might be blocked. So, invest in a location that offers good appreciation rate and will not face liquidity crunch in the future.

Last Updated: Mon Feb 16 2015

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