Investment is a smart way to ensure financial security. If you're just starting out, the world of property investment can seem overwhelming. In order to boost your confidence, we've got three crucial tips you'll need to make prep you for investing in real estate.
1. Plan and budget: The first step to venturing into property investment is planning and budgeting. Pan out an investment plan. Ask yourself questions like, 'Do I want to invest in a plot of land or an apartment?', 'What is my budget for investment?', 'How long do I plan to keep my investment for?' The answers to these questions will help you identify your investment goals. Based on these goals, you can chalk out a plan to achieve them. For example, if you're buying lavish apartment in Mumbai, you need to plan by outlining a budget, look at builders & developers in Mumbai and their offerings, township projects in Mumbai and their benefits, localities which fit your budget and then apply for a loan and invest.
2. Understand tax and legalities: Property investments are governed by laws and involve certain mandatory taxes to be paid. Learn about the legalities involved in the investment. Gain understanding over RERA, Insolvency and bankruptcy Act and taxes like Stamp Duty and Property Tax. Becoming cognizant of these will help you stay astray from defaulters and not be gullible.
3. Location: When it comes to property buying, location is the most important factor. It is the location of your property which determines it valuation and potential price growth. That's why before narrowing on a plot or an apartment, ensure that its location is poised for profit. Assess the infrastructure, community, quality of life in the neighborhood of the property. In case you're investing in an apartment, examine the facilities the neighborhood provides; the assortment of schools, colleges, hospitals, and restaurants in the locality. These factors play a role in making a place family friendly and livable. Thereby, affecting its ability to sell or rent. In case of a plot, look at its accessibility to major roads and highways and how infrastructure development affects it in the future.
Property investment can be challenging. But follow the above mentioned advice, and you'll be better prepared to make the most of your investment.