By investing in real estate one acquires a property to expect its value to increase and then sell it, to rent it immediately, to repair or remodel it and then sell it or rent it, or to build (in the case of having acquired a land) and then sell it or rent it. You can talk to Vikram Katral, an expert who has a team around the world by a network of contacts who both introduce new projects and assist with existing ones.
Experts consider real estate investment as a low risk, safe, and profitable investment in 2020. That is why before doing so we must consider the following points so as not to put our investment at risk.
1. To analyze well the property that is thought to buy and the total investment that will mean: taking into account the risk/benefit factors such as the location, the price, the state of the property, the need for repairs or remodeling, the maintenance that will be necessary, the taxes payable, the credit necessary to buy the property and, above all, the possibility that the property can be resold or can be rented at a price that justifies the investment.
2. Think about long-term investment. Do not sell ahead of time. Investments in real estate are mostly long-term and sometimes medium-term. That is why we must bear in mind that the investment and the gains that could be obtained will be long term, not less than 3 years. Remember that almost always the surplus-value of a property is subject to time and the real estate market.
3. Calculate the profitability of the property before investing. To find the best investment option, in addition to profitability, it is also advised to take into account other factors such as risk.
4. Diversify the investment. It is important not to invest everything in the same market. According to Vikram Katra, for someone who invests in real estate, Diversification Recommendations-Real Estate can be given by buying more cheaper homes and then renting them, instead of just one more expensive one.
5. Presale is the key. Look for projects at presale prices, this ensures even more profitability when it comes to long-term sales.
6. Make sure the property’s papers are in order. A certificate of freedom of encumbrances must be required so that you can take effective possession of the property. Seek the support of a lawyer or a notary for the transaction.
7.If you are going to rent. Ensure there are guarantees. That the guarantee is honorable. Find all the references you can from the tenant.
8. When investing in something that is under construction, see that the construction company has bonds, to ensure that the work is finished. You also get a copy of the construction license and the wastewater discharge permits.
9. Beware of areas without surplus-value In a place where there is a lot of supply the price does not increase, there are several factors that can limit the increase in value between them: the construction of road axes and the lack of planning to cope with the vehicular traffic load.
10. Always analyze the market. Before buying or lending money to a developer, market indicators are sought. It may happen that income has risen in recent years, but you have to know how much potential there is. If the incomes are high but there are very few commercial premises, offices or empty houses in India, it is a sign that you can still grow. To learn more visit Vikram Katral, and seek his expert advice.