Things to know before investing in Real estate
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Real estate has always been considered a safe and stable investment. For most of us, buying a house is a once in a lifetime event and we pool in our entire life savings to make this dream come true. This is definitely a lucrative investment but it is a little tricky to understand strategies and procedures involved. Let us look at some thumb rules that everyone should know before making the leap
- Do your research
There are several ways one can invest in Real estate. You can invest in properties like
(i) Apartments or villas in gated communities
(ii) Independent homes
(iii) Buy a land
(iv) Invest in commercial ventures or real estate investment trusts (REIT’s)
The option you are inclined towards should depend on the purpose of your investment. Be aware that you are playing a long-term game when it comes to stable investment.
Know your terms – real estate jargon can be quite confusing and things might be lost in translation, read our Glossary of real estate terms to be a pro when meeting property owners or construction companies
2. Prepare your budget
- After making up your mind on what type of property you want to invest in, establish your budget even before you start looking at properties. This is a key step while investing. Calculate the down payment that you can make and the total amount you can secure through other financial instruments. Once you are clear on the budget you can invest, you can proceed to start finding options to invest in. Most of the construction companies will help you find the right financing options as well – so communicate your plans with them.
3. Zero down the location
- Location hunting is one of the most important things while looking for a property. Zero down on your location keeping in mind not just your budget but also your daily touch points. Your proximity to your touch points is the most important factor – are you close enough to the school you think is best for your kids, are you able to drive to work and back without being drained, can you get on the highway within 5 minutes – ask these questions when you are finalizing the location.
4. Scope your options
- If you are new to investing in gated communities, start by looking at ventures by reputed long standing builders. This will pay off in the long run due to the quality of specifications they offer, resale value, commitment and due maintenance by them.
- Even before you visit the builders you have shortlisted, look at their track record in terms of completion time, quality of earlier constructions and what the previous customers have to say about them – this will ensure that your judgement will not just depend on the branding/marketing of construction firms.
5. Be Patient
- Last but not least, buying a home is a time-consuming process. Even after picking the right builder and venture, it will be a while before you will be able to take advantage of your investment. Most of us spend our life savings to buy an apartment/villa and make it a home, so give necessary time for things to settle and communicate with your builder openly.
RV Nirmaan has a track record of 30 years in constructing high quality housing ventures and are one of the most reputable builders in the industry. Learn more about our current ventures here and see what our customers are saying about us in our website.