By: Sumita Roy
Investment in real estate is a great way of increasing your market hold. It provides you the option of either earning huge profit by selling a property or by earning a steady income by leasing it out. Here I will discuss the factors that you need to keep in mind before making such an investment, especially, if it is a commercial property.
Parking your money in a commercial property can be trickier than in a residential one. In a residential project, you can invest in all kind of projects: prelaunch, launch, ongoing or completed. Every other moderate house has all the specifications and amenities required for a good and comfortable living. But in a commercial property, only evaluating this is not enough. It has to have all the basic requirements, structure, facilities and much more. Let us look at the points you need to focus on before investing.
• Your experience is an important determining factor. If you have good knowledge about the inner workings of the realty industry, then it will help you to determine how to go about it. You will also have a gut feeling or an instinct about what to buy and where to buy it. Often investing in a market that you know well is better, since you know the area inside out. Begin by evaluating many blueprints, checking their potential and listing them. Your hard earned money will not be in grave danger if you choose from a familiar market with great potential.
• Do not rush in your decisions. Often builder groups offer alluring discounts to attract easy and fast purchases. You may be economically strong but to lose it or invest it in a not-so-good project is not at all wise. You should check the feasibility of the place. Visit it at all times of the day, check the locality and its connectivity, inspect whether all the services and amenities are working well or not. Do not go for a deal if it is comparatively cheaper; examine all its aspects.
• Seek the help of other investors. See what they have to say about the project. They can enlighten you with important details that might have previously slipped your mind. Take their advice, and retain and apply whatever is relevant for your transaction.
• Plan for a long term benefit. There are many projects in the city and its suburbs that were once considered as hot projects but are downsized in the present day. Often changes in infrastructure and connectivity routes can change the projects’ worth. If the property you are investing in is soon to see the arrival of one or many industrial giants, then such an investment will be highly profitable for you.
• Do not invest all your money in a single project. Diversify your investment destinations. It might be highly risky if you park your money in a single project and lose all of it. The market conditions of each locality are variable. Expanding your investing zone will serve as a safety net.
• Often investing in completed projects, which cost more than ongoing or just launched projects, is more beneficial than the pre-launch, launch or ongoing projects. This is because everything is present before you to evaluate. You do not have to fret over the completion of the project and then verify its services. Completed projects are more trustworthy and profit earning in the long run.
A commercial property with great returns can be acquired if you are a bit more careful about the place and project that you are investing in.
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