Investing In Real Estate 101: Financial Steps That Need To Be Taken
- 30 December 2019
Investing in real estate for the very first time can be overwhelming. Even if you have all the necessary paperwork to analyze and process, real estate investing is a different ball game altogether. A step-by-step plan from an experienced real estate investor gives you more clarity and helps you understand the benefits of investing in real estate much better. To help you get started, especially on NRI investment in India, Mahindra Lifespaces – one of the best-known real estate developers in India – brings you a guide on the financial steps that need to be taken.
Below are the 5 steps that show you how to get started with investing in real estate.
- Identify your Budget and Needs
One of the most primary considerations is deciding how much you want to invest in a property. That will basically help you choose a particular set that’s well within your budget. You can then think of choosing a property that offers good ROI and is assured of good appreciation. If you plan to apply for a loan for generating the money for investment, you should identify the subsequent banking requirements as well.
- Choose the Right Target Market
Choosing a target market to invest in is of utmost importance. While many locations have higher prices, many questions about whether they should invest close to home or choose a new real estate market to invest in. Begin by evaluating markets close to home and performing a market analysis before you zero in on a market for investment.
- Identify the Costs and Legalities
Once you’ve narrowed down on a particular market or location, you should also try and understand the property rates that are prevalent in the projects in that market. You can also check as to how the property would appreciate in the coming years. Another financial aspect you need to consider is that of legal costs for registrations and permissions.
- Decide On Investment Property Criteria
Decide on what kind of property do you want to invest in. Ask yourself questions like do you want to invest in a commercial space or residential property? If it’s the latter, would it be an apartment, a row house or a bungalow? Would you rather prefer investing in a residential plot? Another important thing to consider is that of short-term or long-term investment. Financial arrangements vary as per the different types for properties, which makes this step essential for any NRI looking to invest in Indian real estate.
- Sort out the Financing
One of the most important things to do before investing in any Indian real estate property as an NRI is to ensure you have an NRE (Non-Resident External Rupee) and NRO (Non-Residential Ordinary Rupee) account that is duly authorized by the Indian government. You’d also be required to estimate the EMIs (If Any) if you’ve availed a home loan.
We have made it easy for you to understand real estate investing 101 with these steps. While these steps are only the beginning, it will help you in your real estate investment journey. In case you wish to invest with Mahindra Lifespaces, you can get in touch with us and even check out our projects.
1. Money Control – 5 Points for NRIs to know before making a real estate investment in India
2. Bank Bazaar – Guide for NRI investing in real estate
3. Coach Carson – Real estate investing 101 get started
4. Brian Tracy – 6 simple steps in real estate investing your investment fixed up
5. Image Source – Freepik.com/free-photo/couple-consulting-with-real-estate-agent_2111224.htm