Buying a real estate asset, as an property in your name, should be a proper decision with proper objectives and goals. One should not leave any gap of confusion in their mind when it is about to putting your lifelong savings into the realty market. As it is familiar to us the term “INVESTMENT AND ENDUSE“ which are the two most frequently used words on the point of buying any property, thousand more people fall to understand the difference of this two. For an instance lets now look on the important parameters closely.
LOCATION:-
ENDUSERS: For those person, who is planning to own a home for shifting into it or sooner, make sure that the locality is conveniently one situated and that can caters to all the needs. One of the considerable thing is the neighbourhood too and ascertain whether its suits your lifestyle or not. It should have quick access to school, hospital, and college. Infrastructure plans proposed by the municipal body and the central/state governments in the area and major residential projects in the pipeline. This will help you judge the livability index of the locality.
INVESTORS: For those person, for whom buying an property is for only an investment, a follow research of the location is utmost importance. Realty experts suggest that newly emerging localities such as those located on the fringes of the city or suburbs may help you earn a healthy return on investment (ROI). Such developing locations might not have all social and physical facilities in place but offer lower entry price and hence, better scope of price appreciation. However, you must be sure of the time span you wish you stay in the market. For instance, if you have around 10 years, it makes sense to invest in a locality that is at a nascent stage of development. If your time span varies from three to five years, opt for a location that has witnessed some development and price appreciation but not reached its peak yet.
CONSTRUCTION STATUS:-
ENDUSERS: At the stage of construction of the property that you are planning to buy is very crucial as to determines your monthly outflow in the form of EMIs, if you are planning to avail a home loan. For example, if you are living on rent, it might make more sense to invest in a ready-to-move-in property or one that is nearing possession. Or else, you would have to handle the double burden of EMIs and rent. However, buying closer to possession entails a higher value than at launch and as an end user; you must weigh the pros and cons.
INVESTORS: If you are looking for quick returns , then makes an economic sense to enter at the pre-launch or launch stage. You pay less but entail a higher risk as there is no surety of timely delivery. However, you would reap maximum benefit if you exit at the time of possession, provided you are willing to wait that long. If you do not want to wait too long for possession, you may consider investing when the property is partially ready. In this case, the initial capital would be higher, but you may be able to lease out the property within a year or so and earn rental returns.
INFRASTRUCTURE:-
ENDUSERS: When you are buying any property for end-use, be sure that the location boasts of a well-developed infrastructure .A good road network, renowned schools, hospitals and recreational zones in the vicinity and proximity to important connectivity links such as airport, metro, railway
station and bus stops ensure easy and happy living.
INVESTORS: At a time, a lot of suburban localities and peripheral areas might not have the best of the social and physical infrastructure in place. However, the person must see whether the locality is included in the main city’s master plan or not. In addition, a prospective investor must determine whether the state/central government has announced some projects that could lift the area’s location attractiveness index, thereby, infusing capital and rental growth.
TYPES OF PROPERTY
ENDUSERS: You should know which property type – plot, house, villa or apartment – would address your family requirements best. So, base your buying decisions as per your family needs.
INVESTORS: If you wish to earn healthy returns on your invested amount, be sure to buy a property type and configuration that is in demand. To this end, you may have to interact with as many property consultants as you can and also do some exhaustive research online. A good way is to follow real estate communities and forums and decipher the demand. Interestingly, every city has a popular configuration and property type. While in metro cities 2BHK and 3BHK society apartments are the most sought after units, in smaller cities, individual houses are preferred more by the buyer base. Related TagsRealEstate
