Invest In Residential Real Estate and Make Get More Returns
May 27, 2017 Home Trading Steps
Investing in residential real estate is a smart investment move. For better returns, the property invested on should have a good infrastructure, good connectivity, adequate social environment. These parameters apply to the properties approved for the residential construction on the non- agricultural lands.
However, to make the most of the investment, an investor should make a move and buy the investment in Tier I and Tier II cities. Though the property prices are on the rise with costs ranging from Rs 2500 to Rs 5000 per sq ft. These cities promise a good appreciation of the capital value.
Guidelines for the best return in property:
If all these things are kept in mind while purchasing the property, the cost of the properties ideally increases 15 percent every three years
.
Cities with the most promising returns in residential investments are Bangalore, Mumbai, Chennai, Delhi, Lucknow, Chandigarh, Jaipur, Hyderabad, Nagpur, Pune, Nashik, Ahmedabad.
It all depends on the demand and supply and the reputation of the developer.
However, to make the most of the investment, an investor should make a move and buy the investment in Tier I and Tier II cities. Though the property prices are on the rise with costs ranging from Rs 2500 to Rs 5000 per sq ft. These cities promise a good appreciation of the capital value.
Guidelines for the best return in property:
- The best way to achieve the maximum return is to understand the property market cycle and find the best entry point.
- Before buying any property, check its infrastructure and the construction quality.
- The leased out properties by the government must be clear.
- Make sure the developer has all the approval papers and certificates from the dedicated government authorities. If the approvals are still waiting, then keep a close eye on it.
- Check the credibility of the developer. Have a look at their past projects and check how are the maintenance of the property going on.
- Check for the timely delivery by the developer. If they have failed to provide and complete the project on time, find out the reason for the delay.
- It is difficult for a person to understand the legal jargons. To understand them better, hire a legal expert to help you out with it.
- Even though small properties are easy in the pocket, they are difficult to sell them later. Size and area of the property matters.
- Refrain from buying the properties on higher floors for investment purpose. Higher the property, higher the cost.
- The price of development should be lower than the previous peak (2008). Though exceptions can be made for the properties with good infrastructure, construction and amenities.
- Make sure the agreement clearly mentions the time of getting possession and what will be the penalties in case of delay.
- Before investing in a project, compare other projects in the same area and are in the same price range.
If all these things are kept in mind while purchasing the property, the cost of the properties ideally increases 15 percent every three years
.
Cities with the most promising returns in residential investments are Bangalore, Mumbai, Chennai, Delhi, Lucknow, Chandigarh, Jaipur, Hyderabad, Nagpur, Pune, Nashik, Ahmedabad.
It all depends on the demand and supply and the reputation of the developer.
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