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Looking to Invest in Property? Tips to Get It Right

March 14, 2010 by  
Filed under Featured

Traditionally, investment in property is considered the most profitable better than any other investment. However, the risks are also as high as the returns. Also, no property investment can be made at a low capital so while investing in property, one has to be very cautious and make a sound decision that will pay off in a profitable manner in the time span that you have intended. Thus, all property and real estate investments have to b e made after a lot of market research and getting your facts right.

The real estate in India grew by leaps and bounds in the last decade paying rich dividends to those who had invested at the right time. At places like Delhi where infrastructure has developed at a break neck speed, the property prices have sky rocketed. It is only in the last year that the prices have stabilized and that too in a way that it has profited the investors. At places like Mumbai, Bangalore, Ahmadabad, Kolkata also, the property investors have reaped rich benefits. If you are also looking at investing in property, and don’t know where to start, here’s some useful advice for you.

Firstly, like any other investment, whether small or big, in property investment too, you need to do your homework right. The area that you are investing in, all about the home loan that you may want to take, the rate of property price surge in that area, the way other developments are taking place in that area etc. Also, you need to compare prices of properties across localities in the area that you are looking to invest. Another crucial thing to keep in mind while making a property investment is to see what use the property will be to you.

Whether you are planning to put up the property for rental purpose or want to also live there while the prices rise or whether you want the property to just lie idle so that you can liquidate your investment whenever you want are some aspects that you need to look at. Depending on what you have in mind, your property selection whether it will be commercial or residential property will be affected.

With, property investment, you must have a long-term view and understand that any housing market is generally a 7-10 year cycle. This time period will have its own share of highs and lows but eventually it will give you good returns. If you have taken a loan to buy property, you have to plan in advance how your cash flow will be kept steady to support the loan. If you are keeping tenants, some percentage of it will be funded from the rent that you receive and the rest you will have to bear on your own.

You need to keep watching your investments carefully to make sure that you are not running in losses in the long-term. Keep yourself active in the market and remain informed on property prices, values, trends etc on a regular basis. If you do not have enough money to invest in a profitable property, you can also think about pooling in money with friends, relatives or trusted partners. Choose the loan carefully as different bank offer customized loans designed to suit the needs of the users. Following these tips, you can make a profitable investment in real estate.

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Sukhpreet Kaur writes on behalf of 99acres.com, which is an internet portal dedicated to meet every aspect of the consumers needs in the real estate industry. It is a forum where buyers, sellers & brokers can exchange information. At 99 acres, you can advertise a property, search for a property, browse through residential &commercial property .

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