Investing is a process of
restoring money by purchasing assets, lending monetary funds, purchasing gold,
silver etc., with an expectation of good future returns. Understanding the
concept and investment plans before an investment strategy increases the chance
of getting better returns. After information technology, the Indian real estate
sector is one such place which is experiencing a major boom, and this is the
right time to invest in it wisely and utilize the most to earn good profits.
Investing in the Indian Real estate
involves purchase and sale of property for profit and it also includes
purchasing for ownership for rent or sale of real estate for revenue. The investment
becomes risky only when the investor fails to understand and manage the factors
relevant to the Indian real estate as it involves high cash flow.
Property prices are on a hike
nowadays as the market rate is increasing by 1.3% every month. The demand for
rental houses and office are also on an increase. The demand is not the only
factor which influences the cost of the property, other factors like
construction cost, and land prices within the city also affects the prices.
Recent economic development figures show that after the recovery of economic
activity there are moderate changes in the selling prices. The bank loans are
meant to be the main source for external finance. Most banks offers loans to
salaried and self employed people to buy a plot and construct their dream home,
but loan is not provided for agriculture land. A loan for construction on the
site makes you eligible for income tax deductions and these deductions are
applicable only in the year in which the construction is completed. Usually a
person seeking a home loan has to just make arrangement for 20% of the cost of
the property. The tenure on the loan is for 10 years and a few documents are
needed while applying for land loan.
Many people buy a site after
which a well drafted construction is set out. One needs a lot of understanding
with the contractor and the contract should include the work details which is
an important clause, kind of building to be constructed, walls, flooring,
paintings, structure and fittings to be included, approvals, deadlines,
charges, accessories etc, Everything should be executed on a stamp paper where
the agreement is made in any contract pertaining to the Indian real estate.
There are many reference
materials available on Indian real estate for guidance for
the estate professionals, dealers, agents and brokers in the market or for
people eager to increase their knowledge about the booming Indian real estate
market. Terms like Flipping which is quick reselling of any asset for gaining
profit can be understood and learnt. It means that while purchasing a place if
any issues relating to budget, neighborhood, crime turns up, you could get rid
of the place easily soon by making quick nice profit
An era of change has been
witnessed with the passage of time. The use of internet and email has become so
common that any information is available at the click of the mouse. Even in the
field of Indian real estate the expectations have changed drastically. Earlier,
a brochure was enough to provide any information but now investors want to have
a clear picture of the property to be purchased and even insist on ISO
certificates. Facilities like clubs, gym, parking facilities and even open
spaces are considered a prerequisite. It is mostly advisable to conduct a
research on the property before concluding any deal. One also needs to know
about the legal issue related to property buying to be in better sync with the
entire scenario. The development activities, current price status of the
market, and the property index which indicates future value of Indian real estate
should also be known as the need of the day is not just buying the place but
leading a quality life through better planning as well.
