Avoid These Pitfalls While Investing In Real Estate

Posted by Ananya Selvin on October 9th, 2018

In India, investing in real estate is considered to be a fruitful investment option. Hence, many people are attracted to real estate investment due to the appreciation in the land & real estate price over time. However, real estate investment is a tricky business – sometimes a well-planned wise investment can turn up into ashes, and a bad investment can be a blessing in disguise for the investor.

Here are some of the real estate investment mistakes to avoid & make a smart investment decision.

1. Not Doing Preliminary Research:

This is a crucial step but ignored by many, omission to carry out preliminary research on the property will result in a poor return or an extreme case, a dead investment. It’s important to know beforehand the location of the investment, builder’s reputation, property rates, upcoming projects, residential yield, appreciation value, connectivity options, etc. It is wise to say that, proper research is a step away from a healthy return on investment.

2. Not Choosing the Right Property:

There are plenty of investment options to choose from & knowing on which property to invest is crucial. For maximum returns look for residential or commercial properties. While investing in flats & villas look for facilities & utilities along with the construction quality.

3. Not Being Aware of Your Credit Score:

It is said that most of the investors make losses due to poor financing decisions. If you’re knocking bank’s door to finance the property, then remember to keep your credit score clean. A poor credit score will only deprive you of not getting financial assistance from banks & other financial institutions. Hence, clear all the dues with the bank before you invest in a property.

4. Not Discussing Your Plans:

Someone said, “Two heads are always better than one” so discuss your plans with others –family, friends, other buyers/sellers & if required avail the support of professional real estate consultants. Discuss on RERA policies, loan strategies, etc. such discussions will only make you wiser.

5. Not Setting Investment Boundaries:

A buyer needs to know their requirements from a property which eventually helps in setting the investment boundaries. Otherwise, one ends up paying more than the property cost. It is also important to evaluate other properties than sticking to one. Who knows, you might end up with a much better deal than the one you already have in hand.

6. Not Choosing a Reputed Developer:

Always look forward to doing business with a reputed builder to ensure you get best out of the investment. A reputed developer not only offers great facilities & amenities along with quality construction but will also ensure that the approval is taken for handovers.