The real estate market is driving wonders, opening lots of room for excellent returns. Every investor looks forward to investing in properties that offer greater ROI. Whether you are looking at residential or commercial space, it is essential to consider growth factors and plan out the right strategies to invest in ideal properties.
According to market reports, the Indian real estate market is estimated to generate $1 Trillion by 2029. These figures are impressive, but it is all about the right timing and strategies for successful real estate investment.
But when you are new to the real estate investment market, you may have to overcome challenges to make ideal investment decisions. Therefore, to help you make the right investment, we have prepared an article that covers property investment tips for beginners to land an ideal investment that will set the perfect financial future.
About Real Estate Market in India
A report by the Indian Brand Equity Foundation (IBEF) projects that Indian property sales will surpass $1 trillion by 2030. Approximately 7% of India’s GDP is generated by the sector and this industry leads to the generation of over 50 million jobs in the country.
Population growth, urbanization, and infrastructure investment have all contributed to the demand for housing and commercial space.
Tips for Beginners to Ace Real Estate Investment in India
Investing in the real estate market is an important decision and every beginner entering into the play needs to be very careful while making any investment decisions. Real estate investment is about current and future growth so secure a great financial stand. Here are some of the real estate investment advice for beginners to bet on a successful real estate investment:
Decide on a budget
Setting a budget is a crucial real estate tip for beginners which plays an important role before you start figuring out an investment in the real estate market. This factor becomes even more important for beginners as they do not want to keep a lot of money at stake with first ever real estate investment.
While planning your budget, it is important to start by analyzing your personal finances and risk tolerance to determine the amount of investment you can afford. Never make an investment that you cannot afford.
Gain a deeper understanding of the market
When planning your first real estate investment, it is important to gain the best understanding of the nearby market. Once you know the real estate market, you can make the right investment decisions.
From studying the recent market reports, and understanding the localities, choosing a reliable construction company like Brick&Bolt will help you understand the market better.
However, exploring fundamental concepts such as rental property cash flow, appreciation, and leverage will allow you to make the ideal investment choice.
Get a better understanding of financing options
Financing options play an important role in bringing you every step closer to real estate investment. Even beginner investors who are short on funds can still invest in real estate properties with the right financing options.
New investors are generally required to pay only 20-30% as a down payment, making it an attractive option. Nonetheless, learning about all the options for financing real estate in India is a must for a newcomer.
Take a look at financing options such as loans, schemes, and partnerships. Make sure you are familiar with the interest rates and loan terms. Figuring this out will give you an edge in negotiations with sellers and even lenders.
Identify the right property for you
There is a bit of a challenge in this part. As long as you follow the above steps, determining low- and high-investment properties will be easy for you. Finding the perfect property for you does not have a one-size-fits-all solution. While reputed builders such as Brick & Bolt offer safe and low-risk options.
Analyze the local market thoroughly, taking into account factors like location, condition of the property, appreciation potential, and the market’s current conditions.
Check the property thoroughly and perform due diligence to identify hidden issues that could affect the property’s value. However, properties built by trusted builders like Brick & Bolt are usually more likely to grow in value over time, which makes them ideal for first-time buyers.
Ask for help
Don’t hesitate to seek help from specialists along with the research that you conduct. Brick & Bolt, for instance, can be of assistance to you if you have questions or concerns about investment. You only need to reach out to us. A veteran investor can also provide valuable insight into the investment process.
How Can You Invest Without Buying A Property?
You can invest without purchasing physical real estate in several ways. Here are a few examples:
Real Estate Investment Trusts (REITs)
A REIT is an investment fund that owns and manages real estate assets that generate income. The Real Estate Investment Trust (REIT) is similar to a money box, except that it holds real estate instead of money.
REITs are essentially pools of money where many people invest. You are all shareholders of the REIT and own a share of its properties.
As savings accounts grow in value over time, real estate investments are likely to do the same. Throughout the years, REITs have become increasingly popular as investment options.
Real Estate Wholesaling
If you do not want to invest a large amount at first, the best way to start investing is through real estate wholesaling. Generally, real estate wholesalers find a property to purchase, contract to buy it for a fee, and transfer the contract to other investors (called buyers). The wholesaler is then paid when the buyer closes on the property.
It is unknown when real estate wholesaling began, but several decades have passed since its founding. In recent years, real estate investing and online listing platforms have made it easier to find properties.
With little to no money down and minimal risk, wholesaling can be an excellent way to get into real estate investing.
Real Estate Mutual Funds
An investor can invest in real estate mutual funds without having to own and manage real estate properties. An investment fund that invests primarily in real estate investments, such as REITs, real estate stocks, and other securities related to real estate, is known as a real estate mutual fund.
Mutual funds invested in real estate have various investment objectives and strategies. Real estate mutual funds exist in many types, such as,
- Equity REIT Funds,
- Mortgage REIT Funds,
- Real Estate Sector Funds, etc.
Online Real Estate Investment Platforms
Investing in real estate without owning physical property has rapidly become popular among investors seeking a way to own property without owning it. A platform like this allows investors to pool their funds to invest in real estate projects, making the market more accessible and convenient.
With online real estate investment platforms, it’s possible to invest in real estate without owning and managing properties yourself. This is especially attractive to investors who are seeking passive investment opportunities to increase diversification without having to deal with the complexities and risks of real estate.
Hard Money Loans
Hard money loans are one of the most common financing options for real estate buyers and investors. Real estate transactions typically use hard money loans as a type of short-term loan. Contrary to traditional loans from banks or other financial institutions, hard money loans come from private lenders who will take on a higher level of risk for a potentially higher return.
Conclusion
Investing in the real estate market is no longer a headache for beginners. All they need to do is follow the right property investment tips for beginners and choose a reliable construction company to develop the perfect space that meets all their requirements.
When it comes to leading construction companies, Brick & Bolt always leads the game with a team of the best real estate developers with significant resources and quality control standards in hand to develop the best property for you.
We do not let any beginner investor disappoint with high cost as we develop the property as per the end users and make sure that it does not surpass the budget without compromising quality. With us, you will rest assured that build the best space for you. Contact us today and give an expert hand to your construction idea.