Real estate increases in value with time and outgrows other investments most of the time; when investments are done in a planned manner after a proper research. Plus, it isn’t as effected to short-term fluctuations as the stock market. You get a materialistic, usable asset, whether it is residential, rental or commercial property for income purposes.
There are certain aspects that are to be kept in consideration and mistakes that should be avoided while investing in Real Estate such as:
- Unplanned ventures.
- Avoiding research and assuming that you know it all.
- Doing Everything on Your Own.
- Not accepting that all Real Estate is local.
- Overlooking Tenants’ Needs when renting out a property.
- Inadequate financing.
- Underestimating Expenses.
The above points clearly define that Real Estate investments require adequate planning, proper research, taking advise from the experts and keeping in mind the requirements.
ARS Realty– experts in Real Estate consultancy suggests some points when you plan to start or restart Investments in Real Estate:
- Identify Your Financial Strength.
- Choose a Specific Real Estate Investment Strategy.
- Choose your Target Market.
- Decide The Investment Criteria.
- Build Your Team To Conduct Detailed Research and Study The Market Trend.
- Have Your Finances Lined Up.
- Keep Cash Ready For Down Payments & Reserves.
- Chalk out a Plan to Find Deals.
- Find Properties in Growing Neighborhoods
- Diversify Your Investments by Studying a Large Geographic Area
- Look into Single-Family Rentals
- Do Your Homework While Taking Advise from Market Experts
- Maintenance Issues Should be Tackled Before They Get Bigger
- Set a Budget and Timeline but don’
- Have a Reserve and Emergency Fund Handy
- Treat your Investments like a Business
- Negotiate on the Price and Terms & Conditions as well
- Be Updated about the Tax Laws
- Learn and Be Aware of the Market Cycle.
- Invest in RERA Registered properties.
Many Investors have a lingering question in mind regarding investment in Real Estate in 2021. Is it safe to Invest in Real Estate in India in 2021? The answer is in a big Affirmation! … 2020 has great potential for both residential and commercial real estate business. In the last few years, co-ed office space has gained impressive traction in most cities with IT/ITeS players contributing to the majority of the demand.
Real estate investment is a rewarding long-term investment that can reap benefits if wisely invested. Despite challenging market conditions, there are real estate investment opportunities in either Residential Rental Properties, Commercial Properties, Industrial Properties as well as Vacant Land that can be considered in 2021.
The best sectors for investments in 2021 can be the following:
- Residential properties.
- Industrial properties.
- Commercial/retail properties.
- Vacant land.
- Nonperforming mortgages
- Rental property in depressed markets from tight-strapped landlords
- Co-Working Spaces
- Co-Living Residential Properties
Many buyers and investors wait for the New Year to invest in Real Estate. The reasons can vary:
- Real Estateoffers cash flow
- Tax Breaks can be availed
- Building Equity is on the cards for many
- Competitive Risk-Adjusted Returns are easy
- Availability of exciting offers
- Conducive home loan rates by many banks and financial institutions
Real estate investments need a strategic approach than purchasing a property for personal use. When choosing real estate as an investment strategy, purchase is made to make a profit on it. Most of the time, the investor rents out the property or resells it at a higher cost.
Similar to all other investments – equities, bonds and more – one needs to be aware of the positives and negatives of the industry, current market trends, to make smart choices that yield higher returns. Real Estate Consultants and Experts- ARS Realty can take you to a guided tour for smart investments and higher ROI.