The decision to purchase a home for investment purposes is a complicated one. It needs a significantly different approach from the one you’d use when buying a home for self-occupation. Before you invest your money in property, some important aspects should guide your decision-making process.
When buying a home for self-use, one needs to look at aesthetic aspects as well as other personal requirements. But with an investment-driven purchase, the objective is to acquire an asset that will bring maximum returns at minimum cost.
With that in mind, here are four major criteria you should consider.
Get the location right:
While buying a house, you need to keep an eye out for the potential value of the location. If it is one that is likely to see incremental job growth, the area is likely to enjoy a higher demand and an automatic price appreciation. For instance, the IT industries that developed in Tidel Park fuelled a good residential space in Old Madras Road in Chennai. Similarly, in Pune, neighbourhoods around IT companies successfully gained a lot of monetary value for the property in the area. Furthermore, the extent of accessible amenities also goes a long way in guaranteeing a comfortable location – schools, hospitals, shops and other necessities, to name a few, are vital location drivers.
Property features:
In realty purchase, the features or amenities offered as part of the project are as important as the location. For instance, parking space, power-back up, network connectivity and related amenities are bare essentials. Added features such as swimming pools, gyms and sports facilities are luxuries. When the property comes with the promise of delivering the best of these, the value of the property appreciates accordingly.
Financial Standing:
Property purchase has to necessarily be a planned decision. Make sure that you have adequate funds for the down payment and are eligible for a loan if require. You also need to identify reliable professionals to help plan and execute the purchase. Consult multiple professionals for additional affirmation that your approach is right.
Property maintenance:
Maintaining the property is vital. In maintaining your property, it is important to keep track of the taxes, the duties and the payments that are owed from time to time to fix the routine requirements of the property. Make sure that the fixtures are genuine and durable, and that you are not going to have to pump in too many funds on a periodic basis.
To reiterate, there is a significant difference between buying property purely for investment and setting it up for your accommodation. The concern of doing it right is justified considering how much is spent in buying a home. With these four points in mind, it gets a lot easier to handle purchasing property.
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