Investing in real estate not just solidifies your dream of owning a home. But, it is a savvy investment that brings you robust results in the future.
And, now is the perfect time to invest as the real estate sector is projected to grow steadily at 9.2% annually from 2023 to 2028. Urbanization, rental market expansion, and rising property values are key drivers for this growth.
There are a variety of factors that come into play when investing in real estate in India.
However, you don’t have to worry about a thing as we have you covered. Ahead, we tell you how to invest in real estate in India effortlessly. Let’s unpack!
How to invest in real estate in India?
Let’s understand all the important factors that tie together in helping you savvily invest in the real estate market in India.
Determine your investment Horizon
Never jump into investments blindly. The first thing you must determine is whether you are looking for long-term or short-term returns. Clearly state your investment goals as it will steer you in the right direction. While real estate endeavors take time to generate profits, the timeline can be adjusted as per your requirements.
For instance, let’s say you are looking for quick monthly returns. You can always invest in a ready-to-move-in property in a booming city like Bangalore or Hyderabad. This way, you can rent out the property for a lucrative monthly return.
Consult a Financial Advisor
If you have the necessary knowledge regarding real estate investments, that’s great. Otherwise, you can always consult a financial advisor to help you out. They will not only help you with investment advice but even develop your financial portfolio for fruitful returns.
Even if you are absolutely new to this, it doesn’t matter when you have an experienced advisor by your side. The personalized guidance they bring you helps you understand and customize your investment strategies and move in the right direction.
Compare Different Investment Approaches
Unlike the yesteryears, investing in real estate is so easy. You have several options like REITs, fractional ownership, and even real estate mutual bonds.
However, it all depends on what your goals are and what’s the expectation behind the investment. So, never just go with what seems enticing. Instead, see what value it brings you and choose your investment approach as per your requirements.
Do Your Research
Big or small, every investment needs proper research to ensure you are proceeding on the right path. So, before you lock in on an exciting property, do your due diligence.
For instance, look at the history of the builder, the area, the amenities that come along, etc. Even the teeniest component must be cross-checked.
Remember, once you have invested the money, you cannot ask for a refund if it is a wrong decision. So, be wise. It’s always good to have a checklist handy as it makes it easier.
Check The Papers
Never let trust come in between investments. Today, with the number of scams rising, you must first get the property papers checked, even before making a small initial payment. Always get it checked by legal experts so they authenticate it. Don’t try to DIY your way here.
Infact, it’s always best to go a step further. Let’s say, you are looking for a standalone villa. So, see if you can talk to the neighbors to understand if there are no internal conflicts with the owner. It is always better to be safe than sorry.
Understand The Market Rates
Before you jump into browsing for properties, understand the local market and the current rates. This makes sure that you don’t get scammed to pay more than the ongoing prices. So, research the market rates and check with local housing boards to understand more. Take a clear picture and only then start looking for properties.
Check Your Finances
Lastly, when it comes to how to invest in real estate in India, make sure you calculate the financial aspects of things. See if everything is in order before you proceed. For instance, if you are looking to secure a loan from the bank, see if all the papers are in order, calculate the interest, and more.
Different Investment options in terms of Real estate
As aforementioned, there are a few ways to make real estate investments easy. Let’s understand them better.
REITs
REIT or Real Estate Investment Trust is a company that owns, operates, and even finances real estate that helps generate income. Right from private residences to commercial properties, they have it all. So, if you are wondering how to invest in commercial real estate in India, this can be an ideal option. They are traded on major stock exchanges so even if you need liquidity, it is easy to sell these stocks.
Real Estate Mutual Funds
With real estate mutual funds, you can invest in realty or allied company stocks that offer income-generating projects. Here, you use portfolio managers to professionally diversify your portfolio. These mutual funds also invest in REITs.
Fractional Ownership
Today, when it comes to real estate investments, you also have fractional ownership where you only purchase a percentage of the property instead of paying the full price. And, this property is shared between multiple owners. So, even if you don’t have the initial capital but want to get started with real estate, this can be an ideal option.
Tips to invest in Real Estate in India
Now you have an idea of how to get started with your real estate investments. So, let’s take a look at a few more tips that will prove to be useful.
Opt For Know Builders
When you go with established builders, you are already aware of their work and go with the one who delivers high-quality construction. And, trusted builders comply with all the latest regulations so there are no legal roadblocks in the future. Even when you choose a reputed builder, you must do your due diligence. But it becomes easier.
Finally, renowned builders come up with enticing projects that are usually the talk of the town. Whether it’s for yourself or purely investment purposes, these homes come with modern amenities, facilities, and infrastructure that enhance the lifestyle of residents.
Be Compliant
Make sure you adhere to all the real estate laws and maintain compliance. If you are unsure how to proceed, you can always consult a legal expert and they will guide you in the right direction. Maintain compliance and make sure that your property is legally valid. It protects your rights as an investor and prevents any disputes in the future.
Choose Professional Guidance If Necessary
We all know how exciting and profitable real estate is. However, not all of us know how to proceed. That said, you can always connect with a real estate professional to help you out. They have in-depth market knowledge and are always on top of any trends. So, they can help solve any queries you may have and guide you in the right direction.
Conclusion
Investing in real estate is a lucrative option that fetches you both long-term and short-term results. Today, investing in real estate is not hasslesome, thanks to options like REITs and real estate mutual funds. That said, first, always be clear with your requirements and understand all the nuances that are associated with real estate investment before you proceed. This initial research and understanding can ensure you end up with the right property.
Thank you for reading our blog! We hope you found it insightful. Be sure to check out our latest blog, “West-Facing House Plan,” for more valuable information. Don’t forget to follow our other projects at “sattva ashraya” to stay updated with our latest content and developments.
FAQs
If you are looking to invest in real estate without much money, you can choose REITs. They are businesses that own and operate properties that generate income. You can invest in them for a limited capital as well. The way they work is, let’s say, for instance, a REIT is generating monthly rentals. This profit is distributed to all the stakeholders in the form of dividends. That said, it’s always ideal that you clearly understand your goals before you proceed.
When we take a look at our history lessons, we see how man fought wars for a piece of land. Even today, a piece of land is incredibly worthy. Even during uncertain times, it offers a safety net. Infact, it is a stable asset class even in a volatile market. Also, with real estate, you also enjoy various other benefits, which include tax breaks, equity building, etc.
Some of the factors you must take into consideration while choosing a property include:
Go for a decent neighborhood
Ensure there are schools, hospitals, and colleges nearby
The area you choose should have a robust public transportation network
Make sure there are supermarkets, grocery stores, and other stores to take care of basic needs
The apartments you choose should have basic amenities and high-quality fixtures
Go with a reputed builder
