Top 5 Ways You Need to Know Before Invest in Real Estate
Real estate is a dynamic industry, and many factors influence its performance in the market. What a successful formula now may not be for tomorrow. One investment formula doesn't fit all. The idea of how to invest in real estate has changed over time as the industry reinvents new ways of investment, and it is essential to know these ways before investing in real estate for high returns. Whether a newbie to real estate investment or a pro property investor, these top 5 ways help investors make profitable investment decisions.
How to Start Investing in Indian Real Estate
One should know how to invest money in Indian real estate before investing in real estate. There are multiple ways to diversify your investment in real estate. While offline investment involves an investment in the physical property like a land/plot or a house like apartments, flats, villas, etc., online real estate has multiple variants, which we have discussed here in detail for you to understand how to invest in property and get high incomes in a shorter time.
1. Find a Reliable Real Estate Developer
How to invest money in real estate starts with finding a real estate developer with who you can trust your finances and real estate plans go a long way to ensure a peaceful and happy investment. For most of us, real estate investment is huge money earned from effort and hard work. When you trust a real estate partner, you rely on him and put your hard-earned money into property investment requires thorough investigation and background checks to save money and make your investment fruitful.
Here are the top five ways to check a Property developer's reputation and credibility
- Certified under ISO
- Member of CREDAI
- CMDA-approved residential and commercial plots
- Ratings and reviews on real estate websites
- Portfolio on the website and ongoing projects
To add to these points, professional dealing, transparent pricing, fast processes, and timely delivery are the telltale signs of a reputed real estate developer.
2. Select the Right Location
The location is at the top of the list in how to invest in property as it determines the capital appreciation and resale value and impacts the quality of living. The land has high liquidity, and the plot value increases by many other factors. One of them is location. The capital value of land appreciates or depreciates depending on property location- Development potential, connectivity, and neighborhood are the few major factors that play an essential role in long-term capital appreciation and must be checked before investing in a plot.
How to Invest in Indian Real Estate - Residential Plots:
If you have plans to invest in a residential plot, choose the location carefully, be it within the city or suburb, check for connectivity and proximity to supermarkets, schools, hospitals, road connectivity, and public transportation facilities as these can increase the value of your residential plot whether you build a house for own use or renting it out, which allows periodic returns. If you buy land near Chennai , Madhavaram, Manali, Madhavaram, Poonamallee, and Porur are among the rapidly developing areas to invest in residential and commercial plots.
How to Invest in Indian Real Estate - Commercial Plots:
If your real estate fund allocation is for commercial plots, you must choose the location carefully to gain profit or Returns on Investment (ROI). The proximity to local markets and business centers which run commercial activities and transportation facilities adds core value to commercial property and ensures high returns for your investments. Besides, remember to invest in residential and commercial plots based on your budget.
How to Start Investing in Real Estate Based on Property Type
Whether you invest in realty for the first time or have done a few investments previously, knowing the ways how to start investing in real estate, especially for the type of property, not only based on your preference but also from the point of investment strategy, boosts returns. You can invest either in residential or a commercial Plot depending on what suits your investment plan, market fluctuations, and your budget.
Property types by land/plots in Chennai
- Commercial plots
- Residential plots
- Affordable plots
- Luxury plots
- Villa plots
How to Invest Money in Real Estate to Diversify Your Portfolio
Similarly to using different industries in the stock market to channel your financial investments within the real estate sector, you can diversify the investment to mitigate risk and increase revenue generation. Investors from high-income groups diversify their fund allocation to invest in multiple properties at different locations to draw revenue from these real estate investments.Ashok Nandavanam Properties has strategically planned housing layouts in multiple developing parts of the city to facilitate high capital appreciation for our clients in a shorter time.
Here are the top 5 ways how to make a diversified investment in real estate
- Buy a plot/land for long-term appreciation
- Buy a new house to stay
- Buy residential property – renovate and rent out
- Buy a commercial property to lease
- Invest in online real estate for high liquidity
How to Find Out the Value of the Property Before the Investment
Before investing in real estate, know how to calculate the property value per market value. One of the classic methods of estimating the plot value is to ask the recent buyers in the neighborhood or consult a credible real estate developer. The fluctuations in plot value are more common, and the factors such as the number of sales, cost, and income generated by the property determine the Fair Market Value (FMV). Know the correct ways of valuation of a property before investing in property to know whether it falls within your budget.
One of the top five methods to know how to invest in commercial property by its value is to find out the correct estimation of the plot value. Property cost is evaluated by area, location, market value, and State guidance value.
Here are the top 5 ways with which you can know the property value
- Comparing the sales
- Development potential
- Land and house value
- Calculation by belting method
- Government guideline value
Real estate investment requires huge capital and a sophisticated financial commitment for investors, making it essential to know how to invest in real estate to draw profits. The success plan for investment starts with approaching a reliable property developer with diversified expertise in residential and commercial plots and successful ongoing projects in the parts of the city with development potential.
The investor should know the ways to choose the location and type of property aligned to their investment goals for short-term revenue generation and long-term capital appreciation, which also based on individual budget. Knowing how to invest in commercial property helps real estate investors to minimize risks and generate profits in shorter time.