Your Easy Guide to Choosing the Perfect Property to Invest in
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Your Easy Guide to Choosing the Perfect Property to Invest in

  • Highlights

  • Buy a property, which is close to public transport

  • Partner with lenders for property investment

  • Verify title & home condition before sealing deal

  • Check potential selling prices for profit

When it comes to choosing the right investment property, there are different approaches. Traditionally, anyone would go by the simple approach of predicting the returns over the cost of property. But, there’s more to buying a property as an investment.

Here’s a complete guide to help you identify a good investment property and become familiar with the real-estate world:

Research the location of the property:

When researching the location of property, here are some factors that you need to consider:
1. Choose a well-developed area, or one that would develop in the coming years
2. Look for a decent neighbourhood, with minimum crime rate

3. Buy a property, which is closer to public transport
4. Study past market trends of the area, where you plan to invest. If there’s been no rise in real estate prices, there’s perhaps no demand for property in that area.

Additional Read : 5 Easy Tips to Get Your Home Loan Approved Instantly


Consider new vs. existing:

One another common question that people are confused about is whether they should buy a new construction or an existing one. Well, both the options have their pros and cons and ultimately, it is your personal decision.
When you opt for a new house, you can get the newest amenities and a clear title, in addition to the option to customize it as per your preferences. However, there is always a fear of delay in terms of getting the possession of the house. In contrast, with an existing property for investment, you have an option to move in or rent it out immediately. Make sure you verify the title and condition of the house before sealing the deal.

Additional Read : A Guide To Understanding The Costs Of Buying a Home

Applying for Home Loan

Avoid ‘bargain’ homes:

If you are finding a house at an exceptionally discounted price against the prevailing market rates, it might be a red flag. Be cautious when buying such property for investment. There can be several reasons that the property is being sold for at lower prices. There may be an inherent problem with the property, it may be under dispute, or the owner may be in urgent need of money. Research for the real factor before you consider buying such a property.

Go for a reliable developer:

Before you decide to buy a property for investment, make sure you thoroughly research the developer’s profile. Start by checking the projects already delivered by the builder. Further, check the list of ongoing and upcoming projects by that builder.
Look up on news websites to check for delays in delivering the past projects. Also, find out whether the builder has been involved in any project-related legal issues in the past. Don’t depend on one particular source of information, get information about the builder from different sources.

Review your cash flows and profits:

Before buying a house for investment purpose, you should review the cash flows. If you are looking to rent out the property, check the existing rental rates in the area. Analyse how soon you will be able to convert the cash flow into profits. If you are considering selling the house for a tidy profit in the future, keep checking the potential selling prices so that you can enjoy some good gains.

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