Real estate investment in India comes with its fair share of risks as it involves a considerable amount of investment, and one bad move can cost the investor dearly. Therefore, it is critical to know the list of factors you should consider when going for property investment in India.
Crucial Factors for Real Estate Investment in India
In the case of residential real estate investing, proximity to amenities, markets and transport facilities is crucial. You also need to choose between an expensive central location or a more spacious and affordable location in the suburbs. For commercial property investments in India, look at the connectivity to primary markets and accessibility to transport services, highways and warehouses. For long-term real estate investing, especially investing in land in India, consider the expected growth and infrastructural development of the location.
Type of Property:
The kind of property you look at depends on your purpose and budget. For instance, under-construction properties can be cheaper; however, the timelines may not match your plans. Ready-to-move properties, though costlier, are more readily available.
Budget and Payment Plan:
Make a clear budget for your property investment in India. Based on your purpose (self-usage or renting out) and duration of investment, calculate the money you can keep aside not just for the initial lump sum payment but also for regular monthly EMIs in case of loans. This will help you avoid any financial hassles in the long term.
Purpose of Investment:
Knowing the end goal of your real estate investment in India helps you choose the right one for your needs. For instance, for commercial property investment, an office might need a smaller space than a warehouse. Similarly, if you wish to buy a house for renting out to single professionals, you need to buy a house near the major office and commercial spaces.
Valuation of Property:
Research the location and the type of property and check the prevailing market values and the trend of prices. Any proposed infrastructural development will affect the price of the property.Calculate the base valuation of your property to further determine the taxation, charges, depreciation, insurance, etc.
Real Estate Laws and Government Approvals:
Before you finalise your property investment in India, check for RERA registration, approvals from local authorities, compliance with all provisions and payment of necessary taxes.
Background Check of Seller and Property:
Check the legal status of the property, registration details, details of the location, prevailing market value, time of possession, reliability of the builder, etc. When it comes to an individual or group (company) of sellers, check the title documents, ownership details, existing loans on the property, and other details.
Any financial investment carries a component of risk with it. The same goes for real estate investing in India. However, with proper research and all the above-mentioned points before finalising a property investment in India, you can ensure a profitable and secure investment.
Is real estate a good investment in India?
Real estate investment in India is a preferred long-term investment avenue for the security, the sustained increase in the real estate prices and the return on investment. Additionally, the infrastructural development in the Indian cities has seen significant growth in recent years. All this has created a viable opportunity for real estate investing in India.
How to invest in real estate in India?
- Buying and putting a house on rent
- Buying, renovating and flipping the house for profits
- Real Estate Investment Trusts (REITs)
- Real Estate Investment Groups (REIGs)
Disclaimer – This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice to invest in real estate or buy or sale property using, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.