What all should you Consider before Investing in Real Estate?

Real estate is a vast and complicated field for those who are just planning to invest in it for the first time. So many marketing campaigns and promotions are sure to get you confused as to where to invest. There is a lot of study to be done before making an investment in real estate.  It is important to understand the fundamentals of real estate investment and focus on buying the best property. Here are a few considerations you must take into account before buying your first property.

Villas-Plots around Hoskote in Bangalore
Villas-Plots-Near-Bangalore

Educate yourself

Real estate is a complicated market. Every property has its own different characteristic that makes it stand out from the others. So, it becomes difficult to compare different properties on a single basis. Thus, it is important to start your research years before you plan to invest because investing in real estate is going to be a big investment and is going to affect you long-term. Educate yourself through real estate books, websites and forums to know what real estate investing is and how investors have been successful.

Plan well

Plan on what you will be doing with the property before you buy it. Many investors just have one single plan in mind that they would buy a property and then sell it off at a higher price. But, this is not always easy. It may be possible that after you purchase your house, the market rates might drop. What would you do then? Always have a backup plan in mind. In such a case, are you willing to rent out the house until the market prices peak up? This may even take lots of years. Do not buy a house without having multiple plans.

Decide on which property you should buy

What kind of a property should you invest in? This is one big question that you must find an answer to. Do you have a financial set-up to invest in a small apartment or a beautiful luxurious villa? Do you want a place to reside in for yourself or do you just want to buy the property and rent it out? If you want to rent out a property, avoid a very expensive and well-maintained house because that will lead you to spending more and hence, getting a lower rental income. But, it is always suggested that you initially reside in the property for while and then rent it out. This will help you know what the positive sides of the property are and what negative points you must improve on before selling it out. Also, homes for sale bring better rentals later than uninhabited ones.

Check for an appropriate location

Location is a huge factor to consider while purchasing a property. You don’t need to necessarily buy a house in the most expensive area of the city but, the location should be one that has the maximum facilities around like schools, hospitals, market and restaurants to get the house sold easily.

Build up contacts with agents

Search for real estate agents in your area and build up contacts with them. Find out the genuine and reliable ones through your friends and family and shortlist them. An agent is one who can bring you a good or a bad deal. Also, do not rely on only one agent. Speak to different agents to find what majority of them have to say. Follow-up with them from time to time.

Understand the laws

You must be well aware of the laws and legal rules of contracts before making an investment to avoid problems later on. One of the most important things to ask for is the contract on the land used by the builder and the documents for land procurement. There have been many cases where people have bought properties and have been residing in them for years over years and one day, they suddenly find out that the property is illegal. Also, be aware of the terms and interest rates if you are planning to take a home loan for your purchase.

Check for additional expenses

All properties need to be maintained and repaired from time to time. Hence, investing in a property is not a one-time investment. There are other expenses including water, drainage, garbage, utilities, monthly maintenance and much more. You will be getting monthly rentals from the buyers of your property. But, at the same time, you will have to pay your taxes and other maintenance costs. Compare both the incoming and outgoing funds and find out what your net monthly income will be.

If you want to invest in real estate, Adisesh Green City provides you the best of beautifully structured flats and villas in the best locations of Bangalore.

How to Purchase a Home within Your Budget

For most people, buying a house is the most expensive purchase of their life. With the high raising property prices and high interest rates, it is becoming difficult for the middle class population to buy a house. You know you have found the right house when you have all your homely requirements within your budget. It seems difficult but, it’s not impossible. But, in order to make it possible, you will definitely have to narrow down your search and make some sacrifices at some point. Consider the following points that could help you.

Villas-in-Narasapura-Hoskote
Adisesh Projects Green City

Prefer an old construction house

New construction houses cost up to 20% more than an equivalent older construction house. Buying an old construction house with lesser features than what the market is providing now can add up to big savings. But, you also need to take care that you do not buy such an old constructed house that you need lots of further expenses to maintain it in the future.

Renovation

Rather than buying a house that has all the luxurious amenities built-in, you can buy a simpler house and do things to add up to its value. This way you can save the high amounts charged for those facilities and add things at lesser price that are as per your preferences. If you do not have as much cash in hand for now, you can even keep fixing up things as and when required and are appropriate to be done, rather than getting everything done at one go.

Opt for a different location

You know what and how much you can afford. You have a budget in hand. But, you also want to live in the best parts of the town. It is not necessary that you get a house at your price in the location you prefer. So, you need to be open to few other options for location when it comes to your budget. You can adapt to a location that you do not prefer as much but, you can’t live in a house that you can’t afford.

Know your priorities

You should make a list of what you really must have and what are the things you can do without. For example, if you are a couple looking to grow a family in the future, a two bedroom house is a must for you since your kids to-be at some point in life will need a separate room; unless you prefer shifting to another house in the next few years. But, if you think that you must have a three bedroom house, keeping in mind that you may have guests coming in for a few days and you can make them stay in the guest room. Then, this is not as necessary, unless it fits your budget comfortably. Otherwise this would just add to the price unnecessarily for a temporary comfort for few days of the year, and this is not worthwhile. Similarly, having a kitchen is a must-have. But, having a modular kitchen that does not fit in your budget, just because every other person has it, is not necessary.

Keep in mind a list of things you can have an alternative for. Prefer going in for cheaper options, but also take care that they will not cause any financial harm or further expenses to you later on. Plan out your budget and keep your priorities in mind. This will help you stay out of extra unnecessary expenses. If you are looking for a property in Bangalore, Adisesh Green City provides you with beautiful affordable flats, villas and plots.

SUMMARY

Balancing your choice of buying a new house with your budget is one of the biggest annoyances that you can have. You need to make some sacrifices in terms of construction, location and priorities in order to suffice both the requirements.