Best Options For Real Estate Investment In India
For a long time real estate has been considered a very beneficial & fruitful investment model. The perception of having properties as a heritage for the next generation has been inspired by movies. Just like other investment avenues, real estate investment needs lots of money & patience. So, let’s elaborate on this investment class and find out what makes it worthwhile to invest there.
Is Investment in Property Right For You?
According to the investment experts, an investor should consider real estate investment when he/she has no debt and more than enough emergency funds, and good retirement savings. Especially in the Covid19 era, there could be a time when you have to fix something immediately and will require some reserved funds also you need to have cash for the initial payment for property investment. Your emergency fund should be untouched from your emergency fund. Here you have to understand first that real estate is the most illiquid asset class and will not be able to help immediately if any emergency occurs.
Choosing The Best Option
When it comes to the real estate investment, it doesn’t matters you are a beginner or pro, there are lots of options with an excellent return, but a point that matters is “a big investment will be rewarded big returns”. Also, if you are preparing for real estate investment, become acquainted with the market, begin with your area. Deeply do the investigation, who buy the property? Who sells the property? What is the current property price? Examine them, discuss with the local broker, and get more important information from them.
Some of the best options for real estate investment in India are:
- Buy a holiday home
If you want to take a dip in real estate then this is the best option for you. You can buy a holiday home in any tourist hotspot, use it during holidays and earn a good rental at other times. Many real estate developers are presenting residential projects in tourist hotspots, and Tata Rio De Goa is the perfect example. This residential project in Goa presenting the apartment with the best features you can use as your holiday home in Goa.
- REIT (Real Estate Investment Trust)
Beginners who want to explore the real estate investment arena should try investing in REIT. REITs are the corporations that own or finance income-generating properties in different sectors. These corporations have to fulfill a number of conditions to become licensed as REITs. A good number of REITs deals on big stock exchanges, and present numerous advantages to investors.
Equity REIT is the best option for investment, due to the money pooling for development, maintenance, and purchase. So, as an investor, you don’t have to take care of your property. But it usually works on bigger assets like malls, hotels, hospitals, and residential communities. The best thing is that buying publicly-traded REITs is measured as the safest option.
- By A Residential Property and Rent It Out
As a beginner in real estate investment, you can buy a small ready-to-move-in apartment and rent it out. It will slowly make income considering the operating costs are low. But in normal conditions, your home loan will be fixed monthly, but the rental income will increase with time, generating profit for you.
- House-Hacking
Very simple and common real estate investment strategy, an investor buys 2 or more units in a residential community. He only lives in one unit and rent out the rest and leads to a drop off in his living expenditures and consecutively generated income for his home loan and other expenditure. The surplus funds directly go to savings.
- Buy a land, construct a building then sell every unit separately
This is one of the common practices in India and is best for generating big profit. First of all, you need to buy a residential plot, construct a building comprising different units and then sell them separately. Here you will be able to generate a sizable profit.
- Flip Houses
This is undoubtedly the costliest strategy of real estate investment but the most profitable too. Buy an old home, repair & renovate it, and then resell it. Flip Houses may also face problems in selling or, have surprising problems, the cost may increase slightly bit higher. So you need to take the help of experts and ensure that you have enough funds to fix the problem. Usually, property flippers choose the property which needs less repairing work & maintenance.
In the last part of all these best real estate investment decisions, the best decision for you will be the one that suits you perfectly in budget & profit. Consider all the possibilities, whether you want to cope with the household matters, how much time you will give, and finally the funds that you invest.