If you look at the investment pattern in India, then you will find that more than 50% of the investment is in the real estate market. While the stock market is booming at an all-time high it is not prudent on your part to put all your investment in it. To make money in the stock market it is essential that you know how right the trends. If you enter when the trends is very high then it is quite possible that you lose a major chunk of investment in the stock market. Therefore, the second most attractive alternative in front of you to invest your excess cash is the real estate market. Now if you look at the real estate market in 2018 then will find that there are certain positive trends that is making this sector very lucrative for mid-term as well as long-term investment.
What points makes real estate soon ready for investment in 2018?
1). The government has through a series of legislation has improved the investment climate in the real estate sector by bringing in the much desired transparency. It has brought new laws to regulate the real estate market in India, which up till now was unorganized and was done in a very haphazard manner. One of this legislation is the RERA (real estate regulatory act) and the other is GST. These two legislations have improved the business in favour of the consumers. While RERA lays down the liabilities of the real estate developer towards the consumer the GST on the other hand, regulate the tax structure in this vital sector of the economy.
2). TheIndian economy is going through an upward trend and at present it is counted as the fastest growing economy in the world. This huge economic uptrend has created a huge demand for supplies of commercial as well as residential properties in the major cities of India. This has in turn raised the property values significantly.
3). The huge investment in the real estate by both the domestic as well as foreign investors has resulted in a huge inventory in the form of unsold properties all over the country. Therefore, it has become a buyer’s market and if you have the cash then you can invest in residential projects in India and get lucrative deals from the builders who want to sell the properties at a greater discount.
4). The interests on the loans charged by the commercial banks to buy properties have also fallen significantly. The commercial banks which are flush with cash thanks to the demonetization decision of the government are willing to lend loans to people with high creditworthiness to buy properties. At present, banks are giving loans at an interest of 8.3-8.4% rate. This has made the EMI much cheaper which is enabling a lot of people to get cash from the banks so that they can invest in the real estate sector.
5). There is a lot of interest by foreign investors to invest in the growing real estate market in India. If we look at the investment decision of foreign investors, then you will find that they have invested more than 4 billion dollars in this fiscal alone. This huge investment in the real estate sector is gradually pushing up the prices of properties all across the country. Therefore, if you want to invest then you can look at various flats in New Delhi for sale which are available at a good price.
How can you earn big returns from investment in the real estate sector?
You can earn a good amount of money by making a prudent decision of where and how to invest in real estate sector. The first part of the planning should be what kind of investment plan you want to take.
- You could buy properties now and sell it later when the price of those same properties have reached a peak
- You can buy flats in New Delhi for sale now and then lease them for commercial purposes
- you can buy flats in any major city of India and give it out on rent so that you get a steady stream of revenue from your investment
What precautions you have to take while investing in real estate sector?
Any investment decision in residential projects in India is a major one because it entails a huge outlay of capital. It is therefore important that you should take every precaution while investing money in buying properties so that you don’t suffer any loss. There are certain precautions that you should take while investing in the real estate sector some of which are given below.
1). Always look at the credential of the real estate developer before investing in any of his projects. To do this you can look at his past performance. You can talk to any other property owner who have bought aresidentialor commercial building from the real estate builder. He will be able to give you an idea of how positive his experience was.
2). Look at the property that you wish to buy. Make sure that the property in which you are interested in to invest is situated in a very good location. It should be near a highway, railway station, a metro station or the airport. The location of the property plays an important part in determining its price. If it is situated in a place which allows people to communicate easily through multiple medium than its price will go up in future.
3). If you are looking for flats in New Delhi for sale then look at the condition of the infrastructure around the property. If the infrastructure around the property is well developed then you can be rest assured that it is a safe place to invest in.
4). While looking for residential projects in Indiayou should also see that it is situated in such a place from where you can easily go to the market, school, college, mall, bank and the business district. This will make the property very attractive to a lot of people who wish to stay in a place from where they can communicate to other parts of the city without any problem.
