SMART PROPERTY INVESTMENT

Successful investing is buying what will appreciate with time…what is going to be the future and not the present. Smart investors buy where people will want to live in the future. They understand trends, look for sign posts and make their moves accordingly…

Here is a guide to successful and more importantly ‘smart’ investing which will help you towards making the right deal…

Asset selection

To highlight the importance of asset selection we need to only look back to property values of 20 years ago, relative to what the same properties are worth today.

In 1992, for example, the price of a plush 4 bedroom flat in Ahmedabad could be estimated at up to Rs 10 lakh. Today, the same flat, considering the area, interior and condition could cost up to Rs 50 lakh to Rs 1 crore.

Here, the right ‘decision’ can provide us with the lifestyle we aspire to and provide fruitful and easy retirement options. One simply needs to know the two fundamentals of property investing, which are --

The buying decision makes a significant difference

The right buying decision is more important than the right price

One wonders why it is so important to take the right decision when it comes to property investments... well that is because property rates go up and down unpredictably …and a smart decision can work in your favor in inflation as well as deflation…and in terms of recession and economic growth!

We know there are 'smart' and not so smart ways to invest in property. 

What differentiates the two is ‘profit’. Any investment which gains profit is ‘smart’…! This 'smart' way is a sure shot way to secure wealth for the future and directly build assets.

Now that we know what a profitable investment is, let’s check out how one should approach this investment.

Land

In the right location, the value of the land will increase, but this comprises only a small percentage of the cost of your investment. If it is a building, then probably the value of the building in itself will decrease.

Location

Why not select an area which is easily accessible? Shops, markets, schools, public transport, parks, restaurants and multiplexes in the vicinity will offer the best capital growth prospects and demand for your property.

Affordability

What returns will your investment gain versus what it will cost you to hold it in the form of your mortgage repayments, insurance, maintenance, management fees, council rates and taxes?

The best and the easiest way to be safe is to research well before taking the plunge. The difference between a little bit of research and no research at all could be anything from Rs 10,000 to Rs 10, 00000!!!!

As time passes, you are creating a snowball effect, and your wealth will continue to multiply given stable economic conditions and well selected property in the right location.

Remember, as long as there are people on earth, there will be demand for real estate!