Investment is a slippery slope and people who sort this out open the doors to changing their lives forever. Be it precious metals, bonds, stocks, real estate, or anything else for that matter, one needs a deeper understanding and a strategic approach to make their investments fruitful.
Additionally, the new era of economic and financial stability has begun in India, making a majority of the Indian population capable of investing in real estate. However, there are a few factors one needs to consider while leaning into real estate investment.
Here are a few tips to keep in mind while investing in real estate
Always do your research
Relying on someone else's advice for selecting your real estate opportunity will only get you so far. Consider the construction history, amenities offered by the property, the surrounding area, and materials used for construction. as they are extremely important factors one needs to learn about before making a decision.
Stay calm and patient
Unlike bonds, stocks, or gold, real estate is a bigger, a bit riskier, and more important a commitment. You invest a huge chunk of money and unlike other investment options, you usually can't sell a part of it and expect a great price without thinking much about it. It's a strategic decision one needs to make by careful thinking and researching. Don't jump in this field thinking that it's a trend to buy real estate. Think it through and then start your journey.
Consult the best law practitioners
Checking the papers is very crucial when investing in a property. It is very likely for a beginner to get scammed in terms of legalities. It's crucial to be in touch with legal experts and get the papers authenticated by them every step of the way to avoid these problems. One mistake can potentially nullify your investment if you're not careful enough.
Be aware of the rates
Market rates can help you determine whether you're getting a good deal. By studying the recent market rates of a property, you can also have an idea about the potential profit if you decide to sell it in a given time frame.
"Let us never negotiate out of fear. But let us never fear to negotiate." Negotiation is an art that can save you millions when investing in real estate. You don't always have to pay the price quoted by the seller. Negotiate like a pro and put your price in front of them to know whether they would be willing to accept it.
While it has become quite easier to get loans and funds for real estate, keep in mind that you're paying interest for those funds. Calculate the amount you'll be paying periodically and check if you can afford to keep going in the long run. Consult a real estate expert regarding the finances if you're in doubt.
Seek help from professionals
One of the best ways to ensure safety, security and best rates for any property you invest in as a beginner is to seek help from professional agents. From legal arrangements to any potential issue, a good agent can help you navigate the process in the best manner.
Being a real estate owner might be considered voguish and successful these days, but you have to keep being smart about everything when it comes to investment. Always check the risks, bring in seasoned professionals to deal with legal and financial matters, and above all, be patient throughout the process. Real estate for most of the Indian population is once in a lifetime opportunity and one cannot afford to make a mistake when it comes to investing such huge amounts.
Better be alert and updated about the news related to the field and stay in touch with people from the real estate sector to avoid falling prey to common problems.
(Sanya Aeren is Managing Director & Country Head of Berkshire Hathaway Home Services Orenda, India.)
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