Property investment is a big decision of our lives. While some of us make the most out of it, many still struggle, especially when the real estate market is not favourable across India. Magicbricks provides an innovative platform to people in the form of a live chat session-GuruTalk. In this platform, people can raise their queries related to real estate which is answered by Industry experts. The latest session took place with Harshil Mehta, CEO, DHFL on the topic “Things you should do to get the best out of property investment”.
Few excerpts for a Real Estate Investment
Mehta says, “Before investing in a property, you should ensure that all administrative approvals are in place. Other factors to be kept in mind while buying a property are location, price band, infrastructure development and proximity to the city centre”.
So where should you invest for Real Estate? “Industry data and capital value of property indicates higher capital value in Tier 1 cities. Expectation of capital appreciation would depend on the choice of property, its locality and the infrastructure development in Tier1 or smaller cities,” he says. “This also depends largely on your investment horizon. Typically, Tier II cities tend to record better appreciation over a longer tenure,” Mehta adds.
What type property should you invest in? In general, plot investments have proven to fetch greater returns than flats. Plots are better for investment over a longer term horizon in comparison to apartments. Mehta adds, “Plot Investments make sense as infrastructure development across the country seems promising.”
But does this mean buying an apartment is not considered a good long term investment? As per Mehta, “An apartment could be a good long term investment option depending on the choice of location, developer, etc.”
Mehta also answered city specific questions when he opined about the Noida real estate market. He conveyed. “The city does not have many options under direct allotment. One can either look at resale options or else go in for an apartment.”
He further advised, if one has already purchased a property and looking for rental returns, one should consider police verification of the tenant, submission of KYC (know your client/customer) at the society office, to safeguard interest as a landlord while giving flat on rent.