It is possible for someone who has no prior real estate experience to get carried away by the lure of profits and invest in real estate which offers no returns. Real estate investment comes with certain risks and a beginner should keep the following points in mind before spending his/her hard earned money.
- Stay Patient – Buying a property is a time consuming affair, with most genuine property transactions taking a few days to be complete. While a number of real estate firms offer to complete formalities overnight, the fact remains that exhibiting patience can help you land a good deal. Jumping the gun can see you pay more for the property, or purchase one which doesn’t live up to your expectations. Also, sellers can delay projects, which could see your investment not offering any returns for a certain period, checking your patience.
- Research The Property – Doing your homework before you step out to look for a property is critical today. With a number of projects coming up, it can be confusing to choose the right real estate, for sellers are typically known for sweet talking buyers. The amenities on offer,the history of the construction company, the materials used, the area a property is located in can all play a role in determining the returns you get on your investment. Failing to research before buying could see you regret later, negating your investment.
- Check The Papers – The papers of a property are perhaps the most important factor one should consider, for it is possible for someone who is not acquainted with the real estate industry to get scammed into buying a property with fake papers. Buying a property without clear titles can lead to long drawn court cases or litigations, which essentially nullify the investment. All property papers should be checked by legal experts to authenticate them, for failure to do this could see you purchasing a property which could be mired in controversy. A number of times people sell properties below market rate, which should alert you, for such
properties could have litigations or internal issues with the owner.
- Check Market Rates – Most local governments provide a guidance value to help investors know the rate of a property. Knowing the market rate can help you track local trends, ensuring that you don’t get scammed into paying a higher amount than what a property deserves. Researching market rates and working out developments could help you extrapolate the returns you could expect in the future.
- Talk To Neighbours – Talking to the neighbours is a good idea which most of us tend to ignore. This can help you get a first-hand perspective of how things are in a locality, helping you narrow down any problems or areas which could dilute an investment. Talking to them
can also help you know the current market rates and see how the area has developed and the scope for future development. Given the fact that neighbours aren’t salesmen trying to sell you the property, one can get a clear picture of the real estate they intend to buy.
- Calculate Your Finances – It is important to calculate the finances you have in order to ensure that you meet certain goals. While it is easy to get loans from banks, calculating the interest and other factors is crucial.
- Remain Positive – It is important to stay positive while executing a real estate deal, for there are bound to be times when deals don’t fall into place. Remaining calm and composed while interacting with property sellers can help you get additional benefits.
- Negotiate – Negotiations are a key aspect of the Indian real estate system, as everyone is looking for a deal which will make them richer. Knowing the art of negotiation can help you save a lot of money and get additional freebies like parking spaces, furniture, etc.
- Consider The Risk Factor – Real estate investments are typically safer than other investments, but that doesn’t mean they are totally risk free. Legal hurdles and property disputes are extremely common in India and one should ensure that the property they are interested in is clear and minus the hassles.
Owning a property can be the smartest move given the changing dynamics of our times, and keeping these simple points in mind can point a beginner towards the right path to investing in real estate.