Articles

When is Good Time to Invest in Real Estate?

by chartered housing Luxury Apartments
Like real estate gurus say property investment is for people with wise head their shoulders, because many people chose to invest without understanding the market.

Many Indian investors consider buying property as a safe bet. The real estate market, however, is speculative like many other markets and involves both boom and bear periods. While many Indian investors made money during the right period, others made a decent return over a long term or exited the sector during the correction phase. The residential sector is still in a price discovery phase and one cannot expect huge returns as they did in the past.

So you have to time your property investments like you time your share market investments. Timing your property investments is an art. You get to learn this art by spending more time observing and understanding the market.

For Example:

The importance of keeping your eyes fixed on domestic as well as international political events. As for reasons, their outcome affects your ROI.
The importance of financial decisions taken by the government and financial institutions.
Changes in rules and regulations related to loans, mortgage and tax on income from property investments etc.
The time when the value of your currency is falling or increasing in international market.

Ask the expert:

Speaking to a consultant could give you the peace of mind, confidence, and guidance you need to make the right decision regarding a property investment. Matthew Smith BNP Paribas runs a blog that's full of excellent advice for investors, and you can also set up an appointment for a personal consultation if you wish.

Ask the right questions

Once you've expanded your knowledge by speaking to an expert, you'll be able to start thinking about the questions you need to ask before you rush into spending any money. For instance, some of the issues you'll need to think about include:

 Is the property located in an area that's likely to attract a high number of regular tenants?
Are there any planning or development proposals in place that would have a positive or negative impact on tenant demand?
Do you know what kind of commercial property you want to invest in? The main sectors include retail, industrial warehouses, medical premises, and leisure centres, for instance
What kind of properties are you looking at in terms of structure? Are they modern or traditional? How will they appeal to potential tenants?
Is the accommodation you're thinking of buying "future-proof" or does it run the risk of becoming obsolete in the years to come?
While the Indian market has been witnessing slowdown, the developed markets have been growing in double digits. However, there is immense potential in the Indian market as new reform measures such as RERA and Housing for All by 2022, introduced by the Modi government, will bring transparency and boost the sector. The market will now be more regulated with higher investment opportunity from PEs and investors.

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About chartered housing Freshman   Luxury Apartments

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Joined APSense since, August 17th, 2015, From Bangalore, India.

Created on Nov 2nd 2018 07:44. Viewed 494 times.

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