Things to keep in mind while buying your first property

Whether you are buying your first property soon or just contemplating getting one in the near future; real estate investments can be daunting initially; considering the huge amount of diverse information out there; along with the many agents looking to make a good commission. All this can make anyone wary; but if done wisely real estate is one of the most profitable investments one can make.  

Though prices may fluctuate; in the long term a property investment can fetch high returns; and it is in fact traditionally considered to be a good investment plan. For instance, if you buy a 2 Bhk flat in Gurgaon in an upcoming sector which will sooner or later increase in value as other properties in the sector develop; along with Gurgaon being a highly sought after destination today; this is a fairly good long term investment plan you can eventually bank on.

However it is important to note that as in the case of any investment; buying a property also comes with its fair share of risks; but with proper research and planning the risk can be reduced. Hence before you make your decision on purchasing your first property; though not exhaustive; here are a few important tips you could use to help get started.

Weigh all your options – The first thing to do is study the many options available in the market. Investing in a property can range from commercial properties, plots to residential apartments homes, and so on. Hence it is better to weigh all the options in context with your budget, future needs, investment plans; etc. So if you plan to buy a 2 Bhk flat in Gurgaon; you may want to study various options in the area and other areas as well before making the final decision.

Purpose – Before buying you need to be sure about the purpose of investing in the property; that is if you are planning to buy to sell again for the purpose of getting high returns solely; buy to rent for the purpose of receiving future income; or just for living purpose. Accordingly you can make you choices as per your purpose; for instance commercial compared to residential properties; generally sell for much higher profit as the area develops.

Be firm – Investment in property is a long term one and it is not something to be done on a whim; hence before buying the property you need to be sure about the decision. Most importantly you need to be sure you are financially stable and can support your other daily expenses as well before taking this step.

Location – Making the right investment is all about location. Before buying you need to study the various past price trends of the place you are looking at to ensure that you don’t end up paying more than required for the property. Also it needs to be in the right location depending on your purpose, hence if only buying for selling then look in a developing area; while considering buying for residential purpose then look in a suitable location in your budget.

Research on your own– Some investors just jump into buying properties; without really knowing the outcome and may even get lucky. But rather than solely relying on tips from other investors and agents; it is always safer and better to do your own research as well. There are a lot of past trends available online of real estate in the market along with past prices. Moreover before buying; tap into your social network and get reviews of people actually staying in that locality or who have invested earlier in a similar property; to get the real picture. Finally do all your homework and study the niche you want to invest in and learn everything you can about that subject.

Get tips from local agents & investors – Though you don’t want to solely reply on other investors and agents; it’s a good idea to get to know their point of view and tips on the market before doing your own research. Especially because locals will have a much better grasp at what works in the community you are considering rather than any other online review can offer. The best way is to simply request them to show you some of their properties; and while you converse with them try to pay attention to little tidbits of information they offer; as this may come to great use while making the right decision.

Speak the language – Finally in any business or investment it is better to know the lingo used before making the investment to insure you don’t make a crucial mistake while selecting the property. There are certain words you may want to brush up like - Carpet Area, Built-up Area, and so on. In case you don’t know few words and haven’t had time to look them up; it’s better to be honest and let the other person know rather than making a mistake.