Irfan Razack, CMD, Prestige Group
Real estate has emerged as a lucrative asset class for profitable investment – both from the point of view of price appreciation and good earnings. But then in order to reap the benefits of real estate investment, one needs to be an informed investor to navigate the complexities of property buying. For a winning investment, key factors like where to invest, why to invest, what product to invest in, when to invest and from whom are you going to buy property are very crucial.
The real estate investment mantra revolves around these five Ws. The foremost of these deciding factors is where to invest in the property i.e. the location of the property. The suitability of the location has to be judged from its accessibility, the potential of surroundings/neighborhood ( physical and social infrastructure and amenities) in terms of property appreciation and growth.
While firming a decision to invest, one needs to understand the objective behind investment- Why of investment. As an investor, one should be amply clear whether this investment is for the personal use of the property including upgrading one’s lifestyle, earning regular rental income or for long-term financial security . Plots make sense for long-term investment whereas built property is a good option for earning rental income.
Then comes the decision about what kind of property one should invest in – residential property or commercial space. This depends on one’s desire and available finances. Commercial real estate needs higher investment but at the same time offers greater returns. Plots are more affordable and by investing in them, one can look for better appreciation in the long run.
The timing of the investment is very important i.e. when to invest. Those looking for developed spaces- plotted development, a villa community, or an apartment complex, investment at the pre-launch stage. makes more sense. as the prices are quite low. As the prices tend to increase with every stage of development, investing at the early stage of any new development or at the time of the extension of the development, is more rewarding.
And lastly, due diligence with regard to the person from whom you are buying property is very important to ascertain the genuineness of the property .ownership. The property has to be free of any incumberances on it. One can check digital property records for the authenticity of the property. As a last important precaution before entering into any transaction, one should legally get property documents thoroughly verified to ensure safety of the investment.
If you would follow this mantra of investing early and carefully, you can reap the benefits of long-term appreciation of the property along with substantial regular income.