Ready to invest in the real estate?

Real estate is an investment option available to investors with large capital. Monthly rental is an example of regular returns of real estate investments. Real estate investments like all investments are to be proceeded with caution. Before investing, investor should be able to assess that the investment is beneficial or not.

Smart city projects

The government has started smart city projects aimed at boosting up the development in real estate sector. Under the smart city project, government is developing more than a hundred cities. Laws passed such as the Real Estate (Regulation and development) Act 2016 also aims to boost the real estate sale. The law will also help bring transparency in the real estate sector. Before investing investor should check whether the city is a part of any proposed smart project or not. This will increase the return yield significantly. In real estate location is a very important factor.

Home Loans

Home loans are now available at a lower rate for buyers. The developers are offering different schemes to attract buyers. The government is also focusing on building affordable homes for the salaried class people.

Investment in under-construction project is an option for those who don’t have a large capital. If it is not possible to invest in the fully developed project, then an investor should go for the under-construction project. In under-construction project investor initially has to pay the booking amount. The remaining amount is paid after the completion of the project.

Property Rates

Currently, the price of properties is high and because of this buyer is not interested in buying property. This will force developers to reduce the rates of the properties. A problem faced when investing in real estate is liquidity. The real estate sector is not as much fluid as compared to the other available investment options.

An investor should buy a property from well-known and established developers. The main advantage of buying the property from established developers is timely possession of the property. Buying property is a very lengthy process. The established developers manage their own legal team which helps buyers in the documentation process.

Real Estate Investment Trust

If one doesn’t have enough money to buy property but still wants to invest. Then the consumer can try Real Estate Investment Trust (REIT). Investment in real estate fund is like investing in mutual funds. The Security and Exchange Board of India has given approval to the Real Estate Investment Trust (REIT). The minimum investment amount is Rs.2 lakh and Rs.1 lakh on a stock exchange. SEBI has issued several guidelines to the REIT. Real Estate Investment Trusts collect funds from the investors and invests them in a commercial project. It is mandatory for the REIT to raise funds through REIT. Units of the REIT will be traded on the stock exchange after the initial issue. Investment in a REIT is a good option for those investors who invest in stocks.

Infrastructural development in the country is growing faster. It will help the country’s economy to grow at a faster rate. Easy accesses to public transport like metro station, railway station, and bus station will help increase the value of the property. An investor should always be careful before investing in the property because it involves a lot of money.