Home Buyers – What You Need To Know About Investing In Real Estate
November 20th, 2019
A dream home. A place to call your own. This is what Adarsh Group has provided to innumerable families across the country. However, investing in real estate is not child’s play. It involves huge investments, and hence, it is important to keep the basics in mind to ensure you get the maximum satisfaction out of your hard-earned money.Buying a home, or investing in real estate, involves some homework and research, so you get the maximum out of your money’s worth. There are certain rules that need to be strictly adhered to when it comes to own space to dwell in and your own sky to fly in.
- Remember the Thumb Rule
Do not let your heart overrule your mind when making your investment in real estate. Always treat it like any other business proposal and logically negotiate to get the best price possible. Remember the thumb rule, lower the investment amount, higher would be your profit percentage from it in the future.
- Study the area you are investing in
Make sure to conduct enough research before you invest in a property. Remember, the location makes all the difference, whether you yourself opt to stay in it or want to rent it or sell it out. Keeping in mind the target audience, a proper analytical study of the property will assure you returns as per your expectation and even appeal to the market in the future.
- Manage your expenses well
In the case of investment properties, mortgage insurance is not applicable, and hence, the down payment would amount to at least 20% of the total value of the house. So, make sure to have proper arrangements for the same and even calculate the renovation charges and other expenses involved before making the down payment for the same.
- Know your investment safe zone
Always go for a mid-range price bracket based on your personal asset value when investing in real estate in the initial stages. This keeps you and your investment amount in the safe zone and even leaves you with enough scope for undertaking the renovation expenses at hand.
- Clear your previous dues
If you are opting for investment loan options, make sure you do not carry forward your debts in the form of an investment portfolio. Before investing in real estate, try to clear all your dues, debts, medical bills, student loans, etc., so you do not have any added burden on your head.
The real-estate market has always been categorized under markets with high growth prospects. Hence, even though interest rates have been inching up, investing in real estate, primarily for rentals, is considered a smart move in today’s erratic and changing economic setup.