Is it the right time to invest in real estate?

Is it the right time to invest in real estate?

Posted on Feb 26, 2018 at 06:52 PM

Is it the right time to invest in real estate?

If you are planning to invest in real estate in India, it is important to do your research in a way that helps you take a more informed decision. Also, it is important to consult a reliable company such as Nitesh Estates that has a team of professionals who can assist you well through your investment. Informed discussions tend to conclude in scenarios that you are less likely to regret. So, let’s take a look at some of the factors that determine if it is a good time to invest in property.

  • Most important considerations for investing in real estate

    Whether you are a commercial investor or someone seeking a new home, the best time for real estate investments depends on how well you understand the risks vis-à-vis the long term benefits of your prospective investment. Your goal should be to strike the best deal possible and that can be made easier if you have a better understanding of the following:

    1. 1. ROI: Return on Investment

      Your investment should give you high returns. So, if you are wondering, “Should I invest in real estate?” you need to analyse the current market situation to ensure that you get a good deal. In addition to that, you also need to analyse the location of the property and the growth potential of that location in the coming years. Inspection reports and the advice of an appraiser can be quite helpful in this case. You should also make it a point to compare all the options that you have shortlisted, with each other as well as with other similar properties in similar conditions or locations.

    2. 2. Property upgrade

      You need to analyse the possibilities of making any upgrades to your investment in the form of renovations or extensions. The value of your investment can be increased manifold with the right upgrades at the right time. So, it is wiser to have enough room for the same in terms of physical space, practicality and legal requirements. Another thing to keep in mind is the management of the property that you invest in. The costs and efforts required for the upkeep and maintenance of your investment should not be unreasonable but something that you are comfortable with and consider feasible in the long run.

    3. 3. Leverage and security

      Real estate in India is a reasonably flexible investment. Choosing the right sources of funds and insurance is important for lasting security and a more reliable leverage that allows you to not worry too much about your purchase.

    4. 4. Price appreciation

      Returns from real estate investment have generally proven to be good in the long run. So, price appreciation is another important factor to keep in mind before you decide to invest in real estate at a particular point of time.

  • It is also very important to be aware of the factors that drive the value of a property. Interest rates, government policies and timing are the key to making the right purchase decision with which you can remain happy for a long time.

  • 5 reasons to invest in real estate in India at present

    The real estate sector in India has many growth triggers at present. With the government keen on bringing higher transparency and dropping rates of home loan interest, this could actually be the best time to invest in real estate in the country.

    1. 1. It is an ideal buyer’s market in India

      The recent drop in the demand for properties in India has culminated into a huge inventory of real estate projects, offering buyers an amazing range of choices. Also, the big inventory puts the builders in a pressing need for cash flow. As a result, this gives an upper hand to the buyers who can negotiate for better deals before the situation in the market begins to change.

    2. 2. The recent RERA reforms have created more favourable conditions for buyers

      The new guidelines set by RERA or the Real Estate Regulatory Act requires all property builders to be more transparent about the source and use of the funds in each of their projects. In addition to that, RERA would ensure that the properties are finished and delivered on time to the buyers. In short, if you invest in real estate in India, your interests as a consumer, would be protected by RERA.

    3. 3. There is a growing international interest to invest in real estate in India

      Implementation of new regulatory reforms has instilled a higher level of confidence in the investors at a global level. As per industry reports, the real estate sector in India is expected to receive around 4 billion dollars of Private Equity investments from countries like USA, Singapore and Canada. Considering this improved market exposure, buyers can be assured that the sector is headed in the right direction.

    4. 4. Home loan interest rates in India are predicted to get lower

      In the year 2016, home loan interests were in the window of 9.5% per year. However, this has come down to 8.3-8.4% and is expected to go down further. So, this is clearly a very good time to invest in real estate if you are looking for your dream home.

Real estate investments should not be delayed when the time seems highly favourable. Sometimes, waiting too long can lead to a rise in prices and therefore, losing a good opportunity for a better ROI. Turning to a recognized real estate company, such as Nitesh Estates, can be very helpful if you are considering your options to invest in real estate in India.