Investment in Real Estate
Finding a place to call it a home can be fun for few and at the same time be a daunting task for others.
Probably, that is biggest single purchase you ever make.
You have to come up with sizeable down payment in short term though in long term it may beat the inflation.
Hence, it is not only important to buy in the right area, but equally important that you get into real estate at right time.
Getting too much emotional while buying a home can cost you big time. Whether buying or selling real estate, emotions are involved.
Let me share with you a few things that need to be kept in mind:-
1. Be practical
a. In Selecting Agent : – Choose the agent carefully. Meet and discuss with atleast 3 agents. Don’t opt for someone just because he/she is near and dear ones. Ensure whether agent has enough time and most important, plan the area first.
b. Price range : – Go with the pre–determined figure or budget. At times we do fall in love with the home which is actually very expensive. Worst part is that we realise the density of that only when the reality sets in.
2. Risk today and in General
Investment in Properties can produce high returns, but the risk are substantial.
- Major drawback is that , be it Gold or Property emotions are attached and hence it falls under highly illiquid category. No one would think of selling second house in case of emergency.
- For more than two years now, real estate prices have remained stagnant. Now, some sign of corrections are beginning to show up in Mumbai.
- Those who have already invested off late in under construction developments, would agree that most of the constructions are way behind the schedule. EMI of the loan are being getting debited but still date of possession cannot be predicted.
In my next blog you can expect Impact of Investing in Real Estate from Tax point of view and some solution to the problems mentioned above.
Till then happy reading .
You may write to me on firstname.lastname@example.org