Investing in real estate is no joke. It is considered one of the most profitable and risk-free investments you can make. However, it is a mega interchange of capital and one must be well aware of where the money is being invested as it can be a great fortune deal or a big disaster.

There are a few key points that you should keep in mind before investing in real estate.

Property Type

The type of property you buy, will eventually decide the profits you can derive from it. There are mainly four categories – Industrial, Commercial, Residential, and Retail. These can be further divided into under-construction properties and ready-to-move properties. The latter would be an expensive affair, however, instantly available to move in. On the other hand, under-construction properties may not be available as per your timeline. Commercial Properties have resulted in being one of the most profitable options out of the other categories. 

Location

The locality of your property is something you would want to consider very prominently. A spacious lush-green area with all the basic amenities right around the corner can increase the market value of your property. In the case of a Residential Property, the proximity of your local markets, hospitals, schools, and connectivity to highways and airports play a pivotal role. These properties can be expensive but guarantee price appreciation in the future.

Investment Purpose

Investing in real estate requires a clear vision of your purpose. The need to know the intention of WHY the property needs to be in a certain location is something you should think of as a future endeavor. Determining the purpose will help you make the right decision and a fulfilling outcome.

Property Value

Having an estimate of the property value is crucial to know whether the property you are buying is worth the buy or not. Buying a property at a lower price and then spending a hefty expenditure on its renovation and restoration is a complete loss of your money and time. Try to have a comparison drawn among multiple properties with similar characteristics in and around the area. This will help you know the market value of such properties.

Return On Investment

The real estate returns surpass the inflation rate in India. There are different types of investments that generate ROI, including rental properties, fix-and-flip properties, commercial real estate and real estate investment returns (REITs). Each of these, have its own advantages and disadvantages and ROI depends on what type of investment you choose.

Payment Plans

Once you have sorted out the expenditure that you need to invest in, the following step should be to engage in the knowledge of payment plans that can provide you immense flexibility without leaving pressure in your mind. Not having to pay all at once is a huge extraction of risk and stress that could come your way. Paying in installments is a smarter way to avoid paying unnecessary interest rates to banks.

Real Estate Laws

Knowing about the government laws and approvals that are mandatory to invest in real estate is a piece of advice that will sort your life. To help you through this entire process, you can hire professional help - a lawyer who is familiar with all the dos and don’ts of buying real estate with proper procedure. Be familiar with all the rules and regulations that imply in that particular area and avoid paying fines for unnecessary reasons.

These are a few of the points that need to be kept in mind before investing in real estate. Your decision in property investing should be well thought out and researched so that you face no unnecessary problems in the future.