Investing in a property is the biggest decision for each individual. People are using their whole life savings to invest in a property. It is very crucial to know the importance of investing. If the buyer belongs to a middle class family, it can be a big responsibility to them. Before investing you must be aware about the factors which can affect you in future. If this is the perfect time for you to invest in property. So you can get some clarity with us.
It is important to all to know the factors before investing in a property. Finances and operational procedures should be checked properly. Either you are a first time buyer or a fifth time buyer. Every time you need to check all these things. You must maintain all documents required for registration of property before investing. Lets be aware of these 10 essential things which have to be considered before investing in a property. Each and every point is equally important.
Select location which gives you higher returns
People are now more involved in investment in real estate. This is the only safe way to earn profit. If you are planning to buy a real estate property for investment purposes. So Try some best location in Mumbai posh area which gives you higher ROI as compared to other cities. I agree that the property price will also be high but you can enjoy the returns for uncountable years.
Who will be take care of your property
Have you decided? Who will take care of your property in future. The purpose of investing in real estate property is to make profit. But after purchasing the property, who will look after it? Are you going to hire a property manager or will you do it for yourself? Hiring a property manager is good but if you want to do it by yourself you must be aware of the local shops and available 24/7 with your tenants and other things. Because a good rental service is the key to the success of investment in real estate.
Professionalism in management activity
To manage any situation in a systematic way is called professionalism. A professional manager can handle all rental issues in a proper way like security deposits, agreement, expulsion, tenancy etc. They have the ability to handle the problem legally and work professionally. You can choose your best location for investment property. Professional manager can manage all these things.
Always go with strategy of 1% And 5% Rule
If you are not able to decide how much amount should be spent and how much amount should be collected in the form of rent. So just follow this simple formula of numbers. 1% And 5% Rule.
1% – Tenant rent ought to be 1% of the home’s total cost.
5% – You should allot 5% of your income to maintenance and repairs.
Check the property condition before rental
Do Analyse your property condition before renting it to another person. Calculate every expense which can be done on repairs and maintenance. Many types of repairs can be done like Plumbing, Safety features, Appliances and fixtures, Structural integrity, Heating and cooling systems etc. For tenants there are many best locations in Mumbai. If tenants like the interior structure so you can maintain good bonding with your tenants.
Analyse income and expenses to know your actual profit
There are an end number of expenses that can be done on your property. So it is difficult to identify what your actual profit is annually. Always make a note for your understanding. From total income minus your total expenditure so you can get a clarity of actual profit of the month/year. It helps to forecast your profit in the coming year. In Mumbai there are many best location for investment property. So always make decisions as per the budget and location.
Always look the property which is near by railway station
People are more Looking for the property which is near the railway station. This is more convenient to them. You invested in real estate to generate profit but if the location is far from the railway station there is a chance you will face difficulties to find good tenants. As the time passes, people are being more busy in their work so they want more convenient facilities for them. It saves their time and money.
Is your property legally authorised or not ?
Your first priority is to check the property you are going to buy. Is it legally authorised or not? There are few property dealers which deal in disputed property. Always read all documents properly and take advice from property lawyers to avoid any big crunch in future.
Clarity in agreement between you and tenant
The agreement shows the mutual understanding of both the parties that they are ready to make a deal with all the rules which are mentioned in an agreement. It is important to get clarity between them. Agreement shows the transparency of everything. To avoid any dispute, misunderstanding and denying anything. At the same time You should check all documents required for registration of property before investing. It will help you to save time.
Check the builder reputation in market
Do you know? How is your builder reputation in the market? Always take feedback from the people who are nearby to that location. Because they are aware of the builder’s reputation and the work pattern of the labour in the construction site. If you find something wrong, you change the location . You can explore many best location in mumbai.
Check this thing before investing in property to enjoy maximum returns
As you are aware now, there are multiple factors to consider before investing in a property. Don’t hesitate to inquire about your property to the property owner. You have the right to know every minute things about the property. The major factor is location and budget. Always choose location precisely according to your requirement and the property rate of that market. It must fit in your budget also. I hope this will help you in the future to invest in property.
