How to Invest in the Right Property Within Budget?
Investing in real estate can be very tricky especially if you are a first-time investor. Finding the right property that fits your budget is a challenge that most of the buyers face. The real estate market in India is flooding with varied type of properties ranging from land, apartments, villas and commercial spaces. Experts opine that conducting a market study and background research can help you a lot to zero in on a perfect property deal. So the question is how to invest in the right property within your budget?
Let us discuss some important aspects based on this.
Decide the location
The first and foremost step in property investment is to find an ideal location that you are interested in. It could be your native city or a place where you are working, location is an important factor that decides the worth of your investment. Remote localities will usually be cheaper than localities within the city with rapid development. So depending on the purpose of your investment choose a location which is right for you. For example, if you like to stay in a peaceful and verdant area away from the noise of the cities, then consider buying a home or plot in the outskirts. If you like to have a modern lifestyle close to your workplace enjoying the city transport facilities then go ahead and invest in a budget apartment in your favourite city.
Calculate the budget
The second step after deciding the location is calculating your budget to check how much money you can afford to invest in the new property. If you are a first-time homebuyer, then it is better to consult a qualified and trusted financial advisor to know your bank loan eligibility and related criteria. Once you have calculated the budget, then start exploring different options which fit within the limit. Always try to choose an investment which offers high value for money and serves the purpose that you envision. It is better to start small as spending beyond your limit can invite huge financial burdens in future. While analyzing the budget, do not forget to include the additional expenses like registration charges, tax, interior styling, furniture, etc.
Get to know your market
It is recommended that you conduct an in-depth analysis of the prevailing market trends to save yourself from any possible real estate gimmicks. Being well informed on the current market trends, prices, interest rates, and development will allow you to recognize the current market status and plan accordingly. If you see that the property prices are rising fast in an area, it is better to invest soon to gain great return on investments in future. Compare different types of properties in the same locality to find out the pros and cons of each. You should not blindly trust any agent or broker that you meet. Always seek a second opinion from a certified property advisor before entering any financial deal. Checking the legal clearances is crucial while buying a property lest you may end up in serious trouble. Keep a check on the prevailing real estate rules put forward by the government so that you are well informed about the necessary legal formalities. For example, in India properties should now be registered under the RERA Act which protects the rights of the buyers and provides more transparency in the transactions.
Size and type of property
Finding the right property is a confusing affair as you may find plenty of properties of different sizes and types in your chosen location. Land prices can vary depending on the location, size, age and type of property. So it is important to decide what type of property you want to invest in. Buying ready-to-occupy apartments is a great way of earning monthly income as you can rent it out as soon as you buy the property. Another affordable investment option is investing in an ongoing project. Ongoing projects will be priced much lesser than the price of completed projects in the city. Moreover, you can get homes equipped with state-of-the-art modern amenities if you book a flat or villa in an ongoing project. Also, prices will vary according to the number of bedrooms, amenities and quality of materials used. Builders in Kerala like Confident Group offers apartments and villas at varied prices ranging from luxury to budget segment.
Know your needs
Another factor that you may overlook during the process of property search is to know your actual purpose or need with the purchase. Different people will have different intentions for investing in real estate. For some of you, it may the dream home that you want to buy and for some others, it may be a profitable investment for the future. So understanding your need is most imperative in the case of property investments. Also if you are choosing a house, you may have some aspirations like having more space, a garden, play area, security and much more. Most of the modern apartments and gated villas will provide a range of lifestyle amenities that you and your family can make use of. Plan all these ahead and while calculating the budget, choose whichever specifications are important for you. Instead of blindly buying a property, try to choose the one that satisfies all your needs.
Clear your debts
Last but not the least, clearing your existing debts will help you to achieve your dream of buying the property you desire. While applying for a home loan, banks will analyze your credit score or debt to income ratio to check your creditworthiness. So if you have a lot of pending debts, it is unlikely that you will get a loan easily. Try to maintain a positive cash flow in your account so that paying EMIs will be easier for you. You can become a successful real estate investor if you know how to manage your expenses.
We hope that this article has given you a good insight about how to make the right property investment in your budget. Remember that staying up-to-date in the realty market trends will help you become a smart investor. A property can be a valuable asset provided you invest in the right one at the right time. So why wait, make the most of this opportunity by investing in an apartment or villa in your dream location.