Tips on investing in real estate
The real estate market in India is booming with prices of properties soaring high. Thus, investing in real estate has become a popular choice among people. Moreover, financial institutions also encourage people to invest in real estate by providing lucrative home loan rates. Indians have become well aware that real estate would provide good returns on investments and are even willing to take personal loans to purchase properties.
Here are a few tips that one should know about investing in real estate.
One of the most important attributes that one should have is patience. Buying real estate is not a quick affair. While many agencies might make claims of overnight completion of deals but being patient would prove helpful in the long-run.
One should do their homework on the property. It means that every aspect of the property must be researched properly to ensure what is being offered exactly. Do not get roped by sweet-talking agents and individuals. Instead, research the market rates by yourself. You should not base your decision on just the property as the area around a property must also be considered.
One should always check all the papers at the time of a deal. Get them checked by your lawyers as someone might try to scam you with fake papers. Your dream home could end up being surrounded by controversy if the papers turn out fake.
It is crucial that you calculate the exact strength of your finances. While you can apply for home loan, it is important to calculate the rate of interest and the duration of the loan. It would provide you with an idea whether you would be able to pay the EMIs or not.
Real estate is a sound investment and the risk is lower as compared to mutual funds or equity investments. However, they are not completely risk-free and precaution needs to be taken in regard to title clearance.
If you intend to re-invest the amount gained from sale of property, it is advisable that re-investment should be made within 36 months of the initial sale. Doing so would make you eligible for exemption from tax on long-term capital gains.
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