How to Wisely Invest in Property | Homeonline
Jun 03, 2017 Home Trading Steps
The India real estate market keeps changing in dynamics throughout the year. To keep a track of these can be a tiring and difficult task.
We give you a list of details to keep handy while investing in the property.
1. Study the pricing trends:
If you are new to the real estate investment sector, then you might want o study the trend of the rise and fall of the property prices of a particular city or area. Track the current prices and the prices of the properties in the past, compare them and take your decision. Comparing the prices will give you an insight of where the property stands in the market.
Even if the investor is interested in investing in residential property, invest some time in studying the pricing trends of last three years for residential, commercial, and agricultural properties as well.
2. Growth factor:
After you have decided which properties you are interested in and invest your time in researching how the pricing is affected in areas. Property prices are affected due to both macro and micro economic factors. Make sure that you have researched in the same before investing.
Factors like future developments, roads, schools, colleges, hospitals etc also affect the prices of the properties. Also, the regulatory factors also affect the prices of the properties.
3. Study the buying activity:
The rate, at which the property is sold at a particular location, can help in identifying whether it is a buyer’s market or sellers. It might not be possible to figure out the exact number of properties sold, the rough number can help in identifying how long the property stays on the market before being sold out.
The method is called, Days on Market and can be studies by simple excel sheet with the data of past 2 – 3 months.
4. Comparing the locations:
Compare the prices of properties with similar amenities and infrastructure, with the ones situated in the central part of the city and the ones at the outskirts of the city. This will help in finding out the potential investment area. The development in the central part of the city often stagnates because of limited space. Whereas there are broader chances of further developments on the outskirts of the city because of the availability of land.
There are certain proved over time and again methods that can help one figure out the market and its pricing trends. Make sure you go through them before investing in the property.
We give you a list of details to keep handy while investing in the property.
1. Study the pricing trends:
If you are new to the real estate investment sector, then you might want o study the trend of the rise and fall of the property prices of a particular city or area. Track the current prices and the prices of the properties in the past, compare them and take your decision. Comparing the prices will give you an insight of where the property stands in the market.
Even if the investor is interested in investing in residential property, invest some time in studying the pricing trends of last three years for residential, commercial, and agricultural properties as well.
2. Growth factor:
After you have decided which properties you are interested in and invest your time in researching how the pricing is affected in areas. Property prices are affected due to both macro and micro economic factors. Make sure that you have researched in the same before investing.
Factors like future developments, roads, schools, colleges, hospitals etc also affect the prices of the properties. Also, the regulatory factors also affect the prices of the properties.
3. Study the buying activity:
The rate, at which the property is sold at a particular location, can help in identifying whether it is a buyer’s market or sellers. It might not be possible to figure out the exact number of properties sold, the rough number can help in identifying how long the property stays on the market before being sold out.
The method is called, Days on Market and can be studies by simple excel sheet with the data of past 2 – 3 months.
4. Comparing the locations:
Compare the prices of properties with similar amenities and infrastructure, with the ones situated in the central part of the city and the ones at the outskirts of the city. This will help in finding out the potential investment area. The development in the central part of the city often stagnates because of limited space. Whereas there are broader chances of further developments on the outskirts of the city because of the availability of land.
There are certain proved over time and again methods that can help one figure out the market and its pricing trends. Make sure you go through them before investing in the property.
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