Despite the devastating effects of the COVID-19 pandemic, statistics show that real estate has emerged as one of the safest investment options. In recent times there has been a paradigm shift to people preferring to live in their own homes than on rent. There is an increasing trend of making a long-term investment in residential properties. The pandemic has also encouraged investors to look at investing in real estate because investments in real estate grow in value over time, and it can generate regular rental income. However, it is easy for newbies with no prior real estate experience to get carried away, but you should keep in mind that investments come with certain risks and you can also get into real estate investments that are dead ends.
Check this Before Investing in real estate:
Real Estate Regulatory Authority (RERA) registration
You should confirm the RERA of the housing project and verify the RERA number and approvals online or through municipal authorities. Before you sign the dotted line, do not forget to compare monthly maintenance charges, security, social clubs), electricity supply, water charges, with other apartment complexes. Take extra time browsing through and compare the market prices of other ready-to-move-in or under-construction projects, along with the brand value of the developer. It will stand you in good stead for future valuation as well as the infrastructure of the building.
Establish a Budget:
Setting up a budget should be a priority even before you start looking out. You should take the advice of experts and try not to cross your loan repayment capacity so that you do not hamper your essential needs. Ignoring the tempting advice of Brokers trying to persuade new investors to spend more and speculate higher returns, will be a prudent decision.
Think in long term gains
When you are hunting for a location, say for a residential space, you should check the proximity to amenities like bus stops, malls, hospitals, schools. These factors will either benefit your family and increase your prospects of future rental income. On the other hand, investing in commercial spaces calls for proximity to airports, ports, warehouses, etc. The location of the property also adds resale value that the investor will receive.