With industrialization and development, the real estate industry has received a surge in growth and is catching the eye of the common man for investment. While the industry seems a lucrative choice, there are certain points that one must consider while investing in it.
This post particularly talks about one of the prime real estate investment avenue i.e. Apartments.
Considerations
Potential of the Locality: The first point in consideration, whether you buy a property to invest or stay, is its location. The location would be a deciding factor on whether you would get good returns on your investment. Things that come in consideration are whether it’s a developed or a developing area, its proximity to prominent and essential locations and growth possibilities. These factors also determine the resell value of your property.
Amenities Provided: With the advent of apartment culture, each developer is in constant competition with the other to provide you with the best. What should be your concern is what all amenities are being provided by the developer, as it would determine the returns on your investment at a later stage and also define cost appreciation. Some amenities in consideration are Power Backup, Regular Water Supply, Piped Natural Gas supply, Reserved Car Parking, Lift etc. as these have an essential value and returns determining factors.
Credentials of the Builder: Before you invest in a property, it’s important that you know the reputation of the builder and how have his previous projects fared and also if the projects were timely completed.
Due Diligence: It is important that you have a background check on the property and whether it possesses a clear title and all things concerning the property. The developer should provide copies of title deeds and map sanctions and necessary approvals, if asked for.
Advantages
Home Loans: While getting a home loan has become easier, the advantage that comes in is if a particular project is already approved by a particular bank, the approval process becomes all the more easier. It is also easier to get a home loan on an apartment as compared to a land.
Safer Investment: Compared to investing in land, apartments are considered a safer investment, as they are easy to secure and keep a watch on. Also the responsibility of the construction is on the developer, hence lesser or negligible supervision responsibility t your end concerning the construction.
Additional Income: Investing in apartments can also provide the investor with an additional income if he/she puts it on rent. These are recurring returns that come as a benefit. Some factors that play a role in better rental value are location and amenities.