The decision to invest in real estate is fairly significant. In addition, it costs a large amount of money with limited liquidity. Hence, the investor needs to undertake extensive research to avoid expensive mistakes.
What follows is a rundown of a few factors to keep in mind once you’ve begun your hunt for the perfect residential property to invest in.
1. Evaluate Your Financial Condition
This might sound like a no-brainer, but the truth is told, not all investors consider their earning potential and future financial requirements before investing. This can be a big mistake and can land you in debt before you know it.
This is why both present and future cash flow should be evaluated, starting with residential property investment. In addition to this, it’s also important to prepare a list of all unpaid loans and plan their repayment before acquiring any new loans on the property.
2. Consider the Location
Location plays an integral role when it comes to residential property investment. Factors like access to public transport, proximity to schools and hospitals, and facilities like malls, movie theatres, etc., are what make a residential property more attractive to buyers, thereby leading to an increase in prices.
When investing in an under-construction project or an upcoming district, you need to consider factors like its distance from neighboring cities and other developing projects in the area. It’s also advisable to take help from a legal expert who can guide you throughout the purchase process.
The size of the property is another important factor to keep in mind for residential property investment. In most Indian cities, two and three-BHK homes are the most sought-after. This is why it’s advisable to invest in these houses. It wouldn’t be the best idea to invest in a villa or a bungalow in an area where there’s little demand for these homes as it would make it difficult to rent or resell them.
If you wish to invest in a luxury property, try to find areas where people would be willing to rent these homes.
When you invest in residential properties, it’s not just for resale. More often than not, you plan to stay in the house at some point or the other. There are a bunch of specific requirements you might have for your house.
Do you prefer row houses over multi-storeyed apartments? How many bedrooms do you need? Are you looking for a new house or a used one? Does the property have enough parking space? Meeting these specifications is important to ensure that the property is suitable for your needs.
5. Builder Reputation
Investigate the builder’s reputation. Some developers are prone to difficulties such as plan approvals, last-minute revisions, job delays, poor construction quality, and so on. The idea is to avoid such developers.
The easiest way to find a competent developer is to look at their previous work. Meet a few residents if possible to get a sense of the place. A few crucial characteristics of a competent developer include:
- Timely possessions
- Project layouts
- Excellent flat layout (inside design).
- Excellent build quality.
- Quality fittings (lighting, faucets, etc).
This is undoubtedly one of the most important factors to consider for residential property investment. Opting for a reputable real estate developer helps secure your money and ensures you get the right value. One such real estate developer is Ashton Gray. With years of experience in delivering turn-key real estate, Ashton Gray can help you make the right investment choices.