Want to Buy Real Estate? Must Read!

Whether you are willing to buy a residential or commercial property, you need to be very cautious because it’s probably one of the biggest investments you do in your lifetime. Investing in real estate means you’ll be putting a huge portion of your hard earned money into it, so you need to consider some factors before finalizing the property you want to buy.

You should buy properties that enhance your quality of living along with fulfilling your home-ownership dreams. To make sure that you invest your money in the right property, here are some factors that you need to consider:

1. Find a Registered Real Estate Developer

This is the most important factor while choosing a real estate property. There are many instances where buyers have invested in real estate properties that have never materialized. Many people who invested in properties almost five years back still did not get possession of their properties.

So if you want to invest safely, you should always look for registered real estate developers who work according to a certain code of conduct.

2. Work with Reputed Builders

This is another important aspect when looking for top real estate companies. Always carry out background checks of the real estate developer you are willing to work with. Refrain from working with developers who have been involved in various legal issues.

3. Location

Location of a property, whether commercial or residential, is very important. Make sure that the property is located close to hospitals, schools, work area and such other conveniences. If you are willing to buy commercial property, make sure it is located close to the main transportation points.

4. Check the Exact Carpet Area, Amenities and Facilities Offered

Most of the real estate developers would quote prices based on the total area of an apartment, but you should insist on paying the price depending upon the exact carpet area. Apart from the carpet area, you should consider the amenities and facilities offered. Check whether there are 24 hour water and electric supply, ample parking space, generator backup, etc.

5. Registration Fees

Apart from the actual price of the property, you will also have to pay registration fees, which depends on the value of the property. So, the amount of the registration fees and related expenses should also be considered.

A Final Thought

Buying property is one of the biggest investments in one’s life, so you should be extra cautious so that you don’t get conned. Always work with top real estate companies who are registered with some real estate organization or the government. The right decision will bring back a lot of benefits while a small mistake can make you repent for the entire lifetime.

References:

http://realestateinyourtwenties.com/blog/seven-must-read-books-for-real-estate-investors/
http://www.jagoinvestor.com/2010/08/tips-while-buying-house-real-life-experiences.html
http://www.businesstoday.in/cover-story/tips-to-buy-a-shop-retail-space-property/story/197994.html
http://www.globalpropertyguide.com/Asia/India/Buying-Guide

Investing in Commercial Property – A Profitable Deal

When it comes to a secure form of investment, Real estate tops the list. And the best thing about this form of investment is that it avails the long term benefits for investors. When we specifically talk about the different kinds of property options available in the market for investment purposes, Commercial Real Estate yields great benefits.

Benefits Of Investing In Commercial Real Estate
For people, who have spare cash & do not have any immediate need for it, investing in commercial property would be a great idea for them. Investing in commercial real estate provides a steady source of income & also has a great scope in future as far as rent potential & property value is concerned.

• Excellent ROI:-
  As per the results revealed by the recent studies conducted, the rate of returns associated with real estate investment is much higher than that of share & bond market investments. There are several types of commercial property available in the market to choose from. Investing in such properties is a smart way of protecting oneself from long term inflation.

• Steady Source of Income:-
  By leasing out their commercial property to tenants, the property owner can ensure that they have a reliable source of income. A property owner is liable to be paid the lease amount, specified in the agreement by the tenants. This income is not affected even if property prices fall during the lease period. The income may increase after a specific time period, if so mentioned in the contract, or if the lease period expires.

• Higher Rates of Income:-
  When compared, investing in commercial real estate yields a higher rate of return than the investment in other kinds of property. Also, yet another appealing factor that works in the favor of commercial property investment is that, at the same level of risk investors can expect to earn higher rates of returns.

The equity of the property can be enhanced with proper maintenance & by selecting suitable tenants to lease out the property. By investing in good commercial property, an investor can ensure that he has a tangible asset that will serve as a shield against inflation & yield great profits at the same time.

References:

http://toirel.blogspot.in/2012/09/things-to-consider-before-buying.html

https://goo.gl/8uTTWZ

http://www.nolo.com/legal-encyclopedia/pros-cons-investing-commercial-real-estate.html

http://www.investopedia.com/articles/investing/052215/top-tips-investing-commercial-real-estate.asp

Points to Note while Buying Property

Buying real estate is a popular kind of investment as it provides high future returns. The motto behind buying a property could be different but it is a major financial move. Whether you are planning to buy the property as part of your investment plan or moving in, there are numerous things to consider before you make the leap. You might come across plenty of alluring property projects that are going to boom in the coming years but be very careful before you invest as a bad investment could mean a significant loss in terms of money. In order to avoid such a situation, it is always better to prepare a checklist about the kind of property you would like to invest in & choose a property option that meets the most number of criteria on the checklist.

• Location – The location of property is an important thing to consider before buying. Is it located close to schools, markets, hospitals, etc? Consider the average time taken to reach all these places from the property?

• Accessibility/Connectivity – Is the property accessible? Is it well connected to other important locations across the city? This is important because you or your spouse would need to travel to your office/shop on a daily basis; the kids would have to go to school/college, etc. – for all this proper connectivity is a must.

• Neighborhood – Is the property you are considering to buy located in a safe neighborhood? This is important to ensure your personal safety and that of your family.

• Legal Regulations – Does the property adhere to the legal regulations outlined by the concerned authorities? Was it built as per the building code? Have all the previous dues e.g. property tax, etc. been paid?

• Budget – Is the price being quoted for the property within your budget? Outlining the budget is an important step that should be undertaken before you actually start looking for viable properties. This narrows down the possibilities and makes your search more effective and less time consuming.

These are some of the essential considerations that should be kept in mind while buying new real estate. By preparing this checklist, you can ensure that you do not end up investing in property which does not meet your requirements efficiently.

References:

http://www.selfgrowth.com/articles/points-to-consider-when-buying-property-in-mumbai

http://timesofindia.indiatimes.com/business/personal-finance/Nine-things-to-keep-in-mind-while-buying-your-first-house/articleshow/24456559.cms

http://www.moneysavingexpert.com/mortgages/house-buying-guide

Why Real Estate Investment?

Real estate investing involves purchase, ownership, management, rental and/or sale of real estate for profit. Stocks, bonds, mutual funds, investments, and real estate - though the list seems to be endless, making a choice is still considered to be a tough task. Given below are some of the reasons as to why real estate industry is believed to be the king of investment.

• Inflation Hedging: When the economies grow and expand, the demand for the real estate industry consequently increases along with the increase in rentals and that translates into higher capital land prices. India, being a developing country, requires less amount of investment but much greater returns.
• The Positive Cash Flow: It is the real estate industry that generally gives you huge investment options wherein you could receive a guaranteed and tangible income throughout the year. This is what exactly a positive cash flow is.
• Scope of appreciation: Capital appreciation is the increase in market value of the asset over time, realized as a cash flow when the property is sold. The real estate industry is generally considered to be one of the safest options in a long term perspective. Industry Experts in the realm of real estate industry agree that in a period of ten years the real estate industry has seen the highest scale of appreciation in comparison to any other class of investment. As communities grow, so does the value of your property. History has shown that real estate prices have continued to steadily increase over the years. The longer you hold onto your investment property, the more potential you have to get a high return.
• The Tax Benefits: Real estate sector is one of the major contributors to the country’s GDP. And since the government wants to promote affordable housing and housing for all, the investments in real estate are bound to give you tangible tax benefits of as much as INR 1,00,000 in the upcoming year.
• Leverage: Leverage here in simple terms or in terms of the real estate industry would mean the ability to use the borrowed capital in order to ensure a potential return on investment. Real estate industry is the only possibility among various investment classes that allows for leverage. For example by paying a minimum of 20% cost of the property, you as the owner could control the income from the property. The remaining 80% can be availed from banks in the form of home loans.
• Diversification in the investment portfolios: Having a diverse investment portfolio would only help you in diminishing the risks and increasing the returns on investment. Assets which are not co – related to each other in the same portfolio would decrease risks.

Real estate is a distinct asset class that is simple to understand and can enhance the risk and return profile of an investor's portfolio. On its own, real estate offers competitive risk-adjusted returns, with less principal-agent conflict and attractive income streams.