Tips To Choose Wisely When Investing

Property buying among the newly financially liberated middle-class segment in India has sky rocketed, and with a good reason. Young educated professionals are always on the lookout for investment opportunities that offer high returns, if invested wisely, and real estate companies are more than happy to play to the gallery. Although articles in newspapers and other reports about the booming real estate industry are to be believed, one should always choose investment options wisely and be wary of certain risks that are inherent to such investments. To this effect, Mr. Bhanu Choudhrie and his team of experts have listed a few points that will help first time buyers in their search for rock solid investment opportunities. 1. Timing: When investing in real estate, timing is an absolutely essential. The market forces that drive property prices are in a constant state of ebb and flow, and crucial factors need to be taken into account in order to invest when key factors line up perfectly and to strike when the iron is hot. A key point to be remembered is that commercial, residential and retail property are all intrinsically different, although inflation is constant that is common to all types of property. Extensive research should be carried out to determine exactly what determines the property price and how those forces change over time so that it will be easy to predict when such forces will complement each other best to suit the buyer. 2. Accrued costs: The monetary aspect of a property is not the only cost associated with real estate. All kinds of property; be it residential or commercial, or freehold or leasehold, have other associated costs that tie into the whole package. Registration dues, stamp duty, and floor rise are the ones that are well known, but other costs such as parking charges, construction delays, maintenance costs, realtor cut, etc. are some of the lesser known, or hidden costs. It would be wise on the investors part to find out about such costs as well as the status of construction before any money exchanges hands to ensure safe investment. 3. Value Assessment: Bafflingly, the practice of valuing property against present market conditions is not a well-established practice amongst buyers in India. Forces that were present during the construction of the project may not be of the same intensity in the present scenario. Being educated about the present value of a property (by getting it assessed) will arm the buyer with valuable information which can be used during negations with the seller and may result in paying a significantly lower amount of money. Information is truly the most powerful weapon in such negotiations. 4. Documentation: Property dealings are associated with mountains of paperwork, and it can be daunting for the common man. Such is the scale of documentation that many buyers will opt to take shortcuts and skirt the process to save themselves the hassle. However, doing so can affect the sustainability, security and the value of the investment. The best policy in dealing with paperwork is to simply be patient and ride it out, as real estate and property investments are no place for half measures. 5. Seller Credibility: A background check on the seller can prove to be fruitful as it is imperative to know the seller forward and backwards. The builders track record is a good indicator of their credibility, and an association with statutory bodies like the Confederation of Real Estate Developers Association of India (CREDAI) also will give clear indicators. The internet can be an indispensable resource for such facts, and many forum exist where other investors talk freely and offer advice and tales of their experiences. A lot can be learned from others mistakes.