How to invest in the right property within your budget?

How to invest in the right property within your budget

Investing in the right property can be intimidating if you are a first-time investor. Investing in the right property that fits your budget requires planning and consideration. Whether looking for an apartment, villa, plot, or commercial building, finding the ideal property within budget is tricky. The Indian real estate market has multiple options that will definitely fit your needs.

It’s always good to do market research and study before finalizing a property. It’s also important to find a budget-friendly property that is luxurious and also gives a good investment return in the future.

Some important points to consider before buying a property are:

Decide the location: The first and foremost step when investing in a property is to decide the location. Determine a specific area or region where you want to invest. While deciding on a location, research the neighborhood to know the basic demographics like age group, income, and family size to understand your potential buyer base. Do check for crime rates and search for information about law enforcement’s safety in the area, along with evaluating the property’s proximity to other essential amenities. schools, hospitals, motorways, public transportation, and shopping g centers. Investigate any planned developments or infrastructure improvements in the area.

Decide the budget: After deciding on a location, the second step is to calculate your budget to check how much money you can spend and afford to invest in a new property. It is advised to consult a certified and trusted financial advisor to learn about your bank loan eligibility. Know about mortgage interest rates and financing options. Calculate the return on investment (ROI) by factoring in the purchase price, total expenses, rental income, and potential. Don’t limit your search; rather, explore different options and invest in the best. While deciding on a budget, calculate it, including tax, registration charges, interior, etc.

Market research: It is always recommended to conduct market research about trends, prices, and interest rates. Compare different properties at your desired location to find out the pros and cons of each, do market research properly, and plan accordingly. Check for properties with a rise in prices over time and invest soon in them so that they will benefit you in the future. Look for areas where property value is stable and growing and where your budget aligns. Seek out a certified property advisor before closing any financial deal. Checking the legal clearance is also very important. Do market research on real estate websites online. Keep in check with the new real estate rules put forward by the government to be well informed about legal formalities. For example, now the Indian properties should be registered under RERA, aimed at enhancing accountability and transparency in all property dealings to protect the rights of buyers.

Plot size: While searching, you will come across properties with different geographical areas, types, and locations. Finding the right property is a difficult task. The price of a property depends on its location, be it a city or village. Land prices vary with size, age, location, and type of property. The best investment option is investing in an ongoing project, as they are cheaper than completed projects. If you are buying a property to make it home, considering the size of the plot is very important from a future perspective. Do research about which type of property sells fast.

Know your requirements: Knowing your needs and requirements are major factors you should consider while investing in a property. Understand the purpose of buying the property. Some buy a property for investment purposes, while others buy their dream home. You should analyze all the options; you might not need all the amenities you are investing the money in. Keep a checklist of all the amenities you will need in your new home. Pick the one that serves the purpose of investing.

Check the legalities: Ensure that the property has clear titles and that there are no legal disputes or pending dues. There are certain legal documents you need to check, such as:

  • Title deed: Ask for the property’s title deed to ensure that the seller is the legal owner and has the right to sell the property. Verify if there are any disputes or legal issues.
  • A sale deed is a legal document that represents the final and conclusive proof of the sale and transfer of ownership of a property from the seller to the buyer. It is one of the most critical documents in a property transaction, and it is advised to read the Terms and Conditions properly.
  • Occupancy certificate: This certificate confirms that construction of the property is completed as decided in the plan. It approves that the property is built with approved codes and laws. It is important to ensure that the building has received an occupancy certificate from the local municipal authority. This document is mandatory while taking a loan.
  • Mutation certificate: It is also known as a possession certificate. It records the transfer of the property’s title from the seller to the buyer. It identifies the property owner and establishes tax liabilities in government records. Ensure that this has been updated to reflect your ownership.
  • Building plan: It is also known as a site plan and is approved by local municipal authorities. It contains the project’s blueprint, layout, and utilities. The buyer should check if the building’s construction is in compliance with the approved plan and that it adheres to the building’s codes and regulations because any unauthorized construction adds to the risk of demolition.
  • No object certificate: It certifies that the necessary approval of departments and authorities like water supply, gas, electricity, fire department, etc. is done and that no acquisition is pending.

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