Whether you are buying a Property or Real Estate for the purpose of Capital Gain or Rental Returns, having a clear strategy is crucial for this strategic investment decision. By carefully going through the points discussed below, we assure you that your Property Investment decision will not only be comfortable and convenient, but will be financially sound as well.
1. Location: The foundation value of any property is unarguably its Location; the foremost factor that affects the price of property both in Present and Future as well. You need to assess the accessibility from Main Road, Public transport facility and Development Prospect in the area.
2. Developer Profile: It is right said that Reputation Matters. A reputable developer reduces the risks related to Project Delays and Quality issues. You need to have a clear answer to questions like
- Which Projects have been delivered by the developer?
- How Satisfied the current clients are with their investment?
3. Proximity to Essential Services: Properties in areas with strong infrastructure attract a better long-term Appreciation value and Rental Returns. Key is to be able to answer the following without a long thought process.
- Are there any Quality Educational Institutes nearby?
- Any healthcare facilities in the surrounding?
- Travel Distance from Work / Business Address?
- Any Convenience Stores nearby?
4. Liquidity Assessment: A smart Buyer always takes into account Liquidity Assessment of a Property.
What is Liquidity? Liquidity refers to how easily you can sell-off your property without a significant drop in Price.
Some Properties are always attractive regardless of Market conditions and some might sit unsold for extended period of time. If you are buying a Property keeping Capital Gain in View, always consider future resale potential.
5. Rental & Comparable: Understanding the Rental trends of the Property under consideration and how well it suits your investment portfolio is a key factor.
- What is the Rental Return of Similar Properties in the Area?
- What is the appreciation rate of similar properties?
- How well this Property suits the demand of the Locality?
6. Security (Physical and Legal): The key points to keep in mind are:
- Security arrangements undertaken for your property and the neighborhood?
- Status of a Clear Title Deed, Building Approvals and Permissions?
7. Neighborhood: The vibe of the community and neighborhood translates into Property Value Retention and higher quality of life.
- Are the neighbors working professionals/ Businessmen, Retired Employees?
- Crime Rate in the Area?
- Availability of Parks, Recreational Facilities in the locality?
8. Project Management: Whether its an Under Construction or a Completed Project, you need to be able to answer the following:
- The Timeline for Completion of the Project
- The quality of Construction Activity
- Responsibility of On-Going Maintenance Services
9. Provision of Utilities: Access to basic utilities such as Electricity, Water and Gas is vital for any property. Lack of such facilities can greatly increase Living cost in the long run.
The Article is part of Estate Advisor Series “Let’s Discuss Real Estate” specifically aimed for public awareness and informed decision making in the Real Estate Sector. For Further Details & Assistance, Please contact us at our UAN 0340- 1114488 through Call or Whats App.