Where should I invest in real estate An Answer from the expert
Skeptical? Where to invest or which property will give you the best return on your investment. A while back I was invited for a real estate development seminar. I was excited as I got to meet few of my old friends and some renowned people from the real estate field. While I was there I received a common question from many which they received from their customers. “ I have money, but where should I invest?”.
An extremely challenging question yet very important. Now why I say this is a hard question because the process of investing in real estate depends on various factors. Here, in this article, I tried to list out some important factors which a real estate project must possess.
Now you may wonder how employment is related to real estate field. Well it is directly connected as many individual buy property for renting purpose. Tenants are naturally attracted to places which are either close to their work premises or to an area where they can get a job and can make good money. Another aspect of this factor is, good salaried tenant simple means steady rental income.
A location with good population means the availability of basic amenities. Also, its an obvious thing that people flock into a place for many reasons like good weather, soothing sight, beautiful natural attractions and etc. A location that lacks this most probably won’t be the best place to invest.
Its very important for a resident that they get easy convenience to daily commute. Also if the location is nearby major attraction of the city and important places then it is more beneficial.
Low Property Taxes
Some things are inevitable just like property taxes in real estate business. Although generally a good location comes with high property taxes, but that’s not true for all real estate properties. So it’s better to use an investment property calculator to calculate which property will give you the maximum benefits with low property taxes.
Low Crime Rates
Be it a commercial place or residential, safety undoubtedly comes in the first priority whenever investment in real estate is concerned. No one wants to live in a place where he/she can’t roam freely.
Now that you know the factors that make a real estate location the best place to invest, let’s dive in to which sector on investment will give you maximum benefits. Before that, you need to clear few things i.e. whether you want a monthly cash flow? Or want a huge capital appreciation? Or want a trophy property
Let discuss each category in brief.
Monthly Cash Flow
Invest in the hilly region of Shimla, Manali, Nainital, Dharmasala or tourist attraction areas like Jaipur. There are tons of cities in India that are home for people who pay rent on time and have a stable job.
Today a basic 2BHK apartment in any areas of Delhi/NCR cost approx 20K per month so investing in such areas is a sure profit. There are also options available where you can hire 3rd party realtors who will help you get a tenant. With their support, you will get a fixed amount of monthly rental without any even visiting the tenant.
This may not give you a huge capital appreciation, but will surely give you an option of monthly cash flow.
This is what the most profitable among the three. It might be risky but the returns are huge and that too in a short amount of time. In this category, you have to find a special situation. In short, if you can’t find the opportunity you have to get out and look for the best location.
It's not an unknown fact that investing in a flat or residential plot at the right time will give you a huge return even with the usual ups and down in real estate business. According to the National Housing Bank data, the property price stats between 2013 and 2017 has increased by about 7.50% in Mumbai and Bengaluru.
This category comes with massive returns. We’re talking about mansion and huge piece of land. These properties are located in prime areas of countries where any downfall in business gets hardly reflected.
Although they come rarely in the market, but when they do they would definitely give you unbelievable returns. These type of projects are only build by famous architects and located near premium location or simply have historic value.
A category that requires lots of money and work. But have great potential for being a long term investment.