Investing In Property? Here's What You Should Know!
One of life's greatest joys often involve our ability to provide for both ourselves and our family through both tangible and intangible aspects to ensure not just a secure present but future as well. Consequently, most of us are driven by this lifelong goal to either save or invest in assets than can stand the test of time.
When one considers investment, one of the most common assets that they often consider is property or something related to it, since it is usually expected to provide the best returns among other options. More-over, it also gives one a sense of be-longing and may also, in some cases, reinforce their social status in society, which is why owning property is also considered a sign of wealthy and prosperity. However, there are certain where one may not be able to do that, such as during a pandemic.
Covid-19 Pandemic And Property Investment
The onset of Covid-19 pandemic has become of the most prominent factors to affect different industries and sectors, and real estate is one of them. While the initial hit was quite serious, the market has shown signs of recovery over the past couple of months, and is even becoming a steady investment option during such unpredictable times.
In India, the property investment scenario is now seeing new trends amidst the pandemic. Builders and developers are witnessing a demand for more co-living and co-working spaces. With remote working and work-from-home models becoming increasingly mainstream, many have begun to invest in homestays as well to allow people to work from anywhere they want; without being limited by geographical restrictions.
By observing such encouraging trends, it is natural to feel inclined or develop an interest in different properties. However, before you do that, it is better to know all aspects of property investment so you can make a sound and well-informed decision.
Property Investment What You Should Know?
Following are some basic, yet extremely important points you should know before investing in property.
By observing such encouraging trends, it is natural to feel inclined or develop an interest in different properties
Developer's credibility before you invest in any property, make sure that the ones you have shortlisted or chosen are associated with credible developers and builders. Focus on who provides the best services rather than who promotes and advertises them-selves the most in public eye. Remember the old adage: `All that glitter may not be gold'. Here are some things you can consider to validate the credibility of a developer:
• Market credentials: Determine how long the developer has been in the market, their experience, and number of years they have been active specifically in the development space.
• Past record: Check the past delivery record of a developer before making an offer. A good track record in project delivery means that a developer is reliable and capable of fulfilling the investor's requirements.
• Project management: One of the greatest credits to a developer lies in their ability to manage and handle multiple projects at a time. A developer supported by a strong team can make project management more efficient and effective, and build trust within investors as well.
Your specific requirements Next thing to keep in mind is to deter-mine your specific requirements in a property where you wish to invest. To keep it simple, simply go through the following checklist to make the process easier.
• Why are you buying? It is important to establish a clear intention for buying or investing in property. Make sure you do it for the right reasons.
• What are the future plans in terms of holding the property? Once you have established intent for buying or investing in property, make sure you establish what you wish to do with in future. Will it be a lifetime buy or just investment know which one works for you best.
Corporation limit With corporation limit, a project come on its various merits and demerits.
Fundamental analysis In most cases, fundamental analysis is more important than technical analysis as it can give a far better idea on overall property information. Through fundamental analysis, you can consider factors like type of locality, market trends, buying behavior, etc. Further-more, it can also paint a far clearer picture to give you an idea about the overall property rather than just focusing on its technical aspects.
Emotional & logical reasoning As we have established earlier in the article, emotional and logical reasoning go hand in hand when someone decides to buy property. While some may purchase it to demonstrate their overall career growth and capacity to own such assets, other may invest in property simply for better returns in future. Irrespective of individual or specific reasons, emotion and logic are key driving factors of buying and investment decisions when it comes to property.
Property investment is probably the safest investment option among other assets as it is part of an industry that is expected to see demand, even during slow periods of growth. Therefore, you can always consider investing in this sector, provided you go through the aforementioned points before making your final decision.