You might have heard about the recent surge in the sales of real estate. Real estate is nothing but a property that consists of land and/or buildings, provided with basic facilities. The sales surge is mostly found in metropolitan cities and industrial belts. According to research, there are a lot of Mumbai houses to be sold and there are growing demands too.
What is the best long-term investment?
Investors prefer to invest in long-term investment because the creation of wealth takes time and they get better returns. They can be stocks, bonds, cash, gold, real estate, etc. Among these, real estate is supposed to be the best long-term investment area, believed across all age groups. According to research, sales of real estate have increased by 15.4% over the last year. The prices have also increased by approx 6.8%.
Sales surge in real estate in recent times :
Sales surge has been noticed mostly in ready-to-move properties as people try to cut out renting or traveling long distances for work from their lives. The sales are more prominent in big cities and metropolitan areas, due to the influx of people from other areas for job purposes and a higher standard of living. The supply of property and houses are increasing to bear with the increasing demands. Also, owning a house is preferred over renting one because of profitability.
Learn more about the turnaround in real estate here.
The investor shift in the type of property:
The investors are shifting towards real estate because of its perks and longevity. The surge in its sales is also responsible. Even in real estate, sales is larger in the properties which are a complex( in a compound with a community, high rising flats) than that of single-family homes. People tend to sell their land to promoters who build high rise buildings for multiple accommodations. Also, as per research, some investors are also investing more in commercial land, mobile homes, and other properties.
How to decide between buying and renting a property?
As per research (or even when you calculate yourself), buying a property is more profitable than having it on rent. When you rent a property you tend to pay more whereas when you buy it you own it once and for all. Even if you are taking a loan for buying it, why pay someone else for periodic stay when you can have the property for yourself by paying the bank?
Financial reasons to buy property:
There are many benefits in buying a property and ownership and they are-
Housing is a strategy of leverage investment where the potential return of investment is made profitable by the use of various financial instruments or borrowed capital. It allows households to have a better appreciation of the value of their homes.
Whether you are owning or renting a property, you are paying for it. So why not buy it and get relief from rent?
Owning a property eventually leads to a ‘forced savings’. It is a great asset.
When you own a home you enjoy certain tax benefits compared to when you don’t. You don't have to pay service tax and there is a reduction in mortgage interest and property taxes from income.
At the time of inflation, property values go up so that’s a huge advantage.
How to choose the most suitable property?
Choosing the most suitable property for yourself can be time-consuming. You need to keep certain things in mind when you are choosing the place you are investing in for a lifetime, or for further returns. You can look for these pointers to help you:
Keep a lookout for location. It determines the cost and price of the property.
Have your own vision about how you can utilize or stage your house. Don’t just go for the present looks.
Consult a contractor or designer to know how to find the actual potential of the property.
Invest with smartness and keep a lookout for changes.
Buy now or buy later?
The cost of waiting to buy is actually the additional money that you have to pay when prices and interest rates increase over a time period. Waiting for buying a property can give you more pains than you can think. You can get lower rates when you buy earlier. Waiting can cost you more than what returns you can get from it. In every field of investment, there are ups and downs. Before the market of real-estate goes down (and prices rise) gather your funds that you’ve been planning and get your property.
A checklist that home buyers should follow:
There are certain things that you should check before you buy a new property to prioritize what you need, likes and dislikes, etc. They are
Knowledge of property taxes
Neighborhood and community at the property
Nearby amenities like schools, market, transportation, etc.
Number of bedrooms, bathrooms, and stories
Area measurement of the property
Correct paperwork of the property
Special amenities like swimming pools, clubs, solar panels, etc.
There are many more things but these are the main ones. Learn more here.
Mistakes to avoid while buying property:
You should not make these common blunders that lead you to lose a property value-
You should not opt for a house outside your budget. Get your budget right before you look for a property to ensure you’re not getting into a snare trap of debts.
You should not submit lowball offers in a hot market. Be smart about your offers as you work with your real estate agent to engage in competitive offers.
Do not make a big purchase when your CIBIL is low. Loan lenders always run a thorough check on your profile so the process of your home loan can get stuck.
Do not forget to budget the closing costs of the house. Along with the initial price of the house, you also have to pay for registration and other extra fees during final settlement so plan accordingly.
Get the ownership of property now that the market is high and demands are aplenty. Real-estate is an asset that will be valuable for many years to go.