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What to keep in mind if you are a beginner in Real Estate Investing!

Real Estate investing is often considered extremely challenging for the first time investors. In the most basic terms, the ultimate goal of investing in real estate is to invest money today so that you can reap the benefits tomorrow. The purpose is to increase your returns in the future. The common mindset of people when investing in Real Estate is that the profit that they make should be more than the risk an individual has taken. Real Estate investment can become simple if you understand the basics, the risks and the economy. At the same time you should not confuse simple with easy, as even a small mistake can lead to major financial irrecoverable loss. What we suggest is that invest in real estate as a business. The same way businessmen make strategic plans and understand all the pros and cons, you should also proceed strategically. Real estate investment if made wisely has made people billionaires. Beginners’ very often easily get carried away when they see the profit figures. So here are some tips that will help you in making a wise decision:

Basic understanding of laws and regulation surrounding real estate: A smart investor always researches and understand the risks involved the property of his interest. There are a lot of factors that can turn your best investment into a nightmare. So a knowledge of the regulations of the surrounding area, price points, competitive pricing, development plans, etc. can be of great help. A qualified Real Estate consultant in such cases can be of great help in identifying the areas/properties/schemes in which you should invest. Plus taking the time to educate yourself on Real Estate investing will always be helpful to you in the long term!

Prefer primary Real Estate: Keeping in mind the facts and figures it has been found out that the demand as well as the value of the primary real estate has not seen much fluctuation. Looking at it, investing in primary properties is a great investment. With this you not only get the home ownership title, but also get financial joys. The  increasingly globalised workforce and multinational work culture has given rise to the rental residential space. The rental prices continue to grow 8-12 per cent per annum, so an investing even in a small 1 BHK can give you returns in the form of rental revenue.

Location, location and location: Location is the most crucial factor in real estate investing. A well connected location which will see development in the coming years is a golden investment. The location will also cover the amenities that will come as an additional offering. Take out time to study the locational advantages and other offerings. All the basic as well as modern facilities like clubhouses, parking facilities, gardens, swimming pool, etc. should be a part of the offerings.

Offers and discounts: A lot many times to lure the customer developers come with offers and discounts. As a new investor, do not get carried away! For all the schemes and offers, do check their authenticity and read all the documents very carefully. In fact a complete due diligence should be done before any payment, with or without discounts.

Thus, capitalizing in the property sphere is a very sound investment. It is always advisable to be familiar with it before diving in. Your property and the area will see an appreciation if you have invested in the right area and at the right time. The value of your property will increase in a few years due to a change in the real estate market conditions. Changes in the surrounding areas often lead to upgradation of your real estate investment. It then becomes an attractive proposition, but it is a very tricky at the same time. Thus, it is advisable to work with a reputable property management firm so that you gain the maximum from your hard earned money. 

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