An ideal investment property is one which offers a capital appreciation
of minimum 10 percent per annum. So, if you are investing in real
estate to fetch good returns, then you need to concentrate on the
location of the property. Return on investment in real - estate is
directly proportionate to the location of the property. Hence, before
purchasing the property, one should very particular about its locality.
Few points of consideration at the time of investment in real – estate
are as follows:
• Invest in a growing area: Always invest in a
growing location not in already established areas. For a middle class
person with mediocre income, cost of property in established area is
very high and mostly out of reach. If you want to purchase property in
established area, then you need to compromise it with a small sized
property. Secondly, the rise in the value of the property in pre
established location is lower in comparison to the growing area. The
cause remains in the nature of the real estate market. The prime or
established areas reaches their worth over a definite phase of time
afterwards it becomes stagnant.
• The property should have
general amenities for value addition: If the property has general
amenities in the nearby area, then it adds a great value to the worth of
such property. For example, if the property has shopping complex,
multiplex or other general amenities like swimming pool, open area,
parks & playgrounds for kids, then everyone gets easily attracted,
which in turn increases the value of your investment. If the property
does not have such facilities, it should have a scope of such expansion
plan. The possibility of better extension plan is more in the growing
areas because its location is generally not overcrowded and have ample
space for such amenities. Most of the upcoming real – estate projects
have all these facilities with their projects to lure more and more
investors.
• The property should have easy access to the public
transport: Property should have well connected to the public transport
as it is highly considered when someone is looking for a residence with
rental or purchase option. Everyone has to travel for accomplishing
everyday needs and a middle class family cannot afford higher petrol
expenses for it. It is always ideal if the property and markets are
nearby. Meanwhile, connectivity to public transport gives an added
advantage to the property. For Example, in Delhi, people are checking
the connectivity of property with metro rail facility because it has
proved to be one of the most convenient type of public transport. So, an
area which is near to the metro station is already double in worth in
comparison to the area which is not connected to the metro. In this way,
connectivity to public transport increases the return on your
investment.
• Availability of Schools & Hospitals in nearby
areas: Before investing in real – estate, always check the availability
of hospitals & schools in the nearby areas. Anyone, who decides to
live there would seek such basic facility. So, they will need a nearby
school & hospitals. An area having reputed global / international
schools and super specialty hospitals will have good worth and they can
provide a good return on investment.
• Has scope for business
& companies: Always keep your eyes and ears open in the area where
large companies or corporate are relocating or already exist. If not, at
least they need to have space to expand and its employees' needs
residential space. If this happens, the value of real – estate rises in
that area for housing of the employees.
If these tips are taken
under consideration, then investors can get a good return on
investments. These are just 5 basic points of consideration at the time
of making investment in real – estate, however you should also take into
account other relevant criteria while finalizing the deal.
