Things to Keep in Mind Before You Make Your First Real Estate Investment
23 Aug 2019
Looking out for buying flats in Kochi? Are you a first-time investor? It can be quite a task making investments until you're well versed in the area of real estate. Ultimately, your real estate investments are made to get you good returns and joyful life.
The first and top priority should be the location. When you are making a property investment, check all the factors around the locality such as reachability to services like school, hospital, accessibility to main roads. During the investment period, the locality can surely evolve. A once deserted property in a decade can turn into a busy street. So, choose wisely the location and conduct a thorough checkup of the neighboring areas and the intended use of land.
Purpose of Investment
Ask yourself the following questions - What is the purpose of my investment? Is it to buy and use? Give on rent? Sell it in the long run? Clear these dilemmas first and have a primary focus in mind. This can broaden your horizon. If you are buying a property for rental purpose, then make sure it is suited to attract tenants. Usually, the purpose is for generating investment returns, either through rental income or through market value appreciation.
Examination of Expenses and Profits
Calculate the money you have in hand and how much money it would cost you in buying the property in mind. Keep aside the extra cost for registration and interiors. Calculate your maintenance expenses. When looking on for making a real estate investment the primary concern to have is one's financial stability. Pay off any existing loans such as educational, medical and be cleared of debts. Consider all the investment loan options. Estimate the price you are going to list your property and calculating the profit you want to make by deducting the expenses.
Return on Investment
It refers to an investment's profitability. It measures the gain or loss generated in an investment. a higher ROI means more profits from the investment. It helps the buyer in analyzing his personal financial decisions. A good ROI is usually around 10%. Often return on housing properties yields from good facilities and quality build. Hassle-free apartment living itself is a good ROI.
Even though people tend to get emotional when buying a home, its best for your benefit to consider the practical aspects too. But don't let your emotions affect your decision when buying your first investment property. Think of it as purely a business investment and logically negotiate to get the best possible price. Zero in on good builders and their commitments which will all add up to your property’s value in the coming years.
Melonwood Homes provide the ideal investment properties for you; apartments and flats in prime locations of Kochi. Melonwood Rejoyz, the new signature project from Melonwood Homes, is the best bet for your first home investment. The strategically located project gives easy access to the city and its outskirts.