Here is How to Start Investing in Real Estate


If you have been looking to diversify your investments lately, the tried and tested real estate option may just be ideal. With the impending launch of India’s first Real Estate Investment Trust (RIET) and a revival of demand among low and mid-income buyers, the stars seem to be in perfect alignment.

Further, projects like GKRS Palacio spurs the demand for a luxurious lifestyle at not so premium pricing. On the policy level, the introduction of RERA and generous interest rate subsidies, under the aegis of the ambitious Pradhan Mantri Awas Yojana, are expected to put India on course of making affordable housing for all a reality by 2022.

To get you started in real estate investing, here is a checklist of some key points to consider:

-> Long term perspective

Like the equity market, real estate is also subjected to cycles of growth and decline. It takes its cue from the prevailing economic and political conditions such as inflation, disposable income levels, institutional investment or even regulatory changes. You need a medium to long term investment horizon of a minimum of 5 years to succeed in the real estate market.

-> Research the property

Before you begin searching for your ideal property, you need to develop a keen understanding of market behaviour to identify new market niches where property can be purchased at cheaper rates, such as under construction ones. Follow up on your online research by attending real estate investor forums and property exhibitions to network extensively with both sellers and buyers.

From checking the builder’s history to verifying land title, real estate investing requires a lot of research. You can leverage the data-backed insights provided by several property data analytics firms to determine the future prospects of the property you want to invest in.

Choose accredited developers that hold the latest quality certifications such as ISO 9001. This will put you at ease in terms of construction quality, timely possession and value appreciation.

-> Talk to existing homeowners

There is no substitute to getting first-hand information from existing buyers about a project. Despite the assurances of the developer, you’d need an independent third-party perspective on incidental expenses such as parking and society formation charges, etc.

They can also give you inputs about the number of vacant flats in the project which can help you negotiate the final selling price with the developer.

-> Calculate your finances

Repair and maintenance costs can erode your rental earnings. In the absence of personal funds or business finance, availing a home loan is ideal. RIET’s also offer a good financing alternative for investors.

If a house for sale in Hyderabad has been on your radar for a while and the cost has been a barrier, you can opt for home Loans to meet your diverse home financing requirements. Cities like Hyderabad are poised for a good growth in property prices and you can gain the first mover’s advantage.

You can consider home loan by Bajaj Finserv Homes & Loans to raise funds of up to Rs. 10 crore. It comes with flexible tenor and convenient repay options. Additionally, you can get exclusive benefits, such as property-search assistance, doorstep services, and top-up loans etc, with these home loans.

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