Investments in 2016:
The most commonly asked question we heard from most of middle class people is: This year – Should I invest in property or not? Should You Buy A House Or Rent? Etc..
The trouble with investing in real estate is that a lot of homebuyers confuse buying a house to live in with making an investment. First thing, you need to stick on your The cause why you need to be able to distinguish between a home and an investment is because the principles for choosing the property defers drastically in both purchases. Remember, a real estate investment should not only offer you excellent capital appreciation, it should also offer a good rental return.When choosing a house to live in, you need to be careful of the social infrastructure to begin with. The schools, colleges, transport facilities, malls, parks, markets, and hospitals–so that your children and family have all they need, close by.
Also consider your workplace distance. How long will you and your wife need to travel every day to go to work and how much time will the children have to spend in the school bus. What is the rush-hour traffic like? Ect.The other thing to think is the safety and safety of family members. Is the area safe in night time? Can your family travel with no difficulty?
The next thing to consider is the accessibility of basic amenities like electricity, water supply, roads, and trash management. Drive through the area and take a look at how well it is maintained. Also consider the approaching developments, and the future ability of the area to handle the added pressure on water, power, and road infrastructure.
When choosing for an investment purpose, the rules are totally different. Keep in mind, that an investment should ideally give you the maximum return on investment. So, not like when choosing a home, an investment decision should not be an emotional one. So be prepared to buy property in a neighborhood that has the highest rental returns.
Do some researches on your income range. Your property decision should be based on that information. If the income range is average middle income, then you should not buy a home in a `Rs 90lac to 1 core’ bracket because you will neither find tenants to take it up now nor will you find buyers when you want to sell it in the future. When buying for an investment, it is not the infrastructure that exists now that should matter, but the improvements that will come in the future. Neighborhoods with good infrastructure will have already seen an increase in prices; you should find the areas where development is going in progress for future. These areas, where the future appreciation will take place. Finally, find good property within your ability to manage it and make your decision to fulfill it.
Source & Image: Times of India, Net