Investment in property or real estate if made in the right place at the right time can prove to be a boon. It is an excellent investment avenue where one does not need to ponder over the outcome at the end of every financial year. The word “Property Investment” may sound intimidating to rookies in this field, but one need not spend months on understanding the pros and cons. Efficient research and consideration of the key points may facilitate the process of investing in real estate.
Before going into property investing, you may consider the following two basic points:
•The purpose of investment – You need to first finalize on this aspect, whether you want to buy a property in anticipation of gaining some return on investment or you want to buy an apartment for self use. If it is just for investment purpose then you will not want to spend too much money and may go for vicinity whose value is likely to appreciate in the near future giving good return on investment. In the second case, where you want to buy a property for self stay, then ambience is of utmost importance, then you will probably not mind spending a few bucks extra for a house located in upmarket.
•Finance for investment – You should plan your budget and cash flow well in advance , as buying a property calls for huge investment. Once the purpose is decided upon, then roll your sleeves up to decide on the way of getting the investment financed. It is one of the most crucial parts of planning and need to be worked out well. You should first determine as to how much can you invest and what will be your source for getting the money. One part of the investment should come from personal savings and the other can be financed through some bank or financial institution. However, the percentage of finance from saving & bank needs to be chalked out. Bank finance would entail payment of installment, so you should calculate your monthly cash flow to work out the exact amount of installment which you can afford to pay. While deciding on the amount to be withdrawn from saving, you should consider if there is any immediate capital expenditure in the offing, then the percentage of saving will get reduced by that amount. This working will also help in determining the amount you can afford to invest.
Property can be bought with the help of a realtor, newspaper ads, online property sale sites or directly from the builders. You may also seek advice from some experienced person.