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Everything to Know about Real Estate Investment in India

Real estate investment is famous around the world for being one of the most lucrative ones. The reasons behind it are obviously great returns on the real estate investment. A lot of people might wonder if the same is true for real estate investments in India. The conditions didn’t seem all that favourable in some of the major cities of the country these past few years.

However, the situation seems to be changing for all those cities except for Delhi. According to studies, every city of India has been showing great absolute growth with Mumbai, Bangalore and Chennai on top. That means, if you buy residential flats in any of these places, you can expect huge returns.

However, let’s discuss exactly what you should know before you about real estate investment in India

Check Your Range and Affordability

The first thing you need to see is whether or not you’re able to afford to buy a property. Suppose you’re interested in one of the 3 BHK apartments in Mulund. Are you able to afford such a transaction? Keep in mind that it’s not just the property value that you need to be able to afford. You need to consider the statutory charges too such as stamp duty, registration, brokerage, TDS, SAC, advocate fee, etc.

Suffice it to say, you’ll need to consider a sum of 10% over the total property value for these charges. That, along with the mortgage interest you’re going to pay are important things to keep in mind. If you have all of this figured out, you should move to the next step.

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Market Research

Ever since the Real Estate Regulatory Act and Benami Bill became a reality, things are beginning to turn. Non-resident Indians and overseas citizens of India can actively invest in the real estate market of India. The current laws make it easier for people to stay invested in real estate which is a good thing. This is because real estate investment is a long-term venture and requires you to stay invested for at least 3-5 years.

Real Estate Investment

Following recent economic changes in the country’s cities, experts are expecting prices to go up in the coming years. This makes it the perfect opportunity to invest. However, it will be crucial where and which property you invest in. You should check the property value and whether or not the project plan is a viable and attractive one.

Property Value

Firstly, you should check the market value for the property. Keep in mind the affordability range you have. Check the locality and the surroundings to see if the project is a great residential development. Think of it as a resident looking to buy a home for themselves. You need to ensure that everything a family can need is available around the residence.

Secondly, you should check the rental yield and calculate the cost you’ll be saving every month. Additionally, check it against your mortgage rate and make sure that you are not going to face losses. Furthermore, if it’s a second-hand property, don’t forget to include damage repairs and maintenance costs. You will need to make the house’s condition a lot better before you can rent it out or even sell it out.

Real Estate Investment

Another thing that makes up for the value of the property is the open area included in the project. The more open areas there are in a project, the more the chances are of its success. Similarly, if you want to start getting an instant return on your real estate investment, you should go for smaller properties.

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This is because there’s a good chance that a smaller property will be sold or demanded earlier. However, if you wish to invest in the luxury real estate sector, it’s not a bad idea either. Although you might have to wait a bit more, the real estate investment will surely result in a great profit.

Property Documentation

This is one of the most important things you need to do when thinking about real estate investment. Hire professionals to help you compile complete documentation for all the processes involved in the transaction. Real estate agents might charge you a certain fee but their input is actually helpful.

You won’t be able to go through all the tenancy contracts or the transfer of ownership contracts yourself. Why would you want to waste your time when you can have a professional look into this for you? It’s simply not worth the risk. Because if anything is not done right, it can be a huge problem in the long run. Real estate disputes take a long time in courts and can cost a lot as well.

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