Investment in RERA approved plots may be a prime way to start your property portfolio and acquire in on the rental game. While it can be easy to get trapped in the excitement of making your first property purchase, it’s important to take your time and proceed with some caution. Jumping the gun on a property is often a costly lesson for buyers to find out. You could find yourself with an investment that costs much more than you bargained for.
The trick to make money from your investment property is to buy well
Now, that sounds like a fairly obvious point but you’d be surprised by how many investors and homebuyers pay too much for their properties.
Now We are not suggesting you should buy cheap RERA approved plots or look for bargains. They’re not that tough to seek out if you look in secondary markets that are out of favour.
You make your money after you buy your investment property not by buying cheaply, but by buying the correct property
Pro Tip: You can get a great deal when buying Gated community plots in Chennai from the garden city.
Get familiar with the RERA approved plots market
You also need to become an expert in the particular region you’re interested in according to Land promoters in Chennai.
We have talked about talking to a lot of people who know about the industry. Now let’s talk about some of the data. Immerse yourself in anything and everything that you possibly can find online when it comes to what properties are selling for on the Multiple listing service:
What are the price points?
What are renovated properties selling for?
What are distressed properties selling for?
What are properties renting for?
How much can you buy a distressed property for?
What can you sell a renovated property for?
Check out Craigslist and Facebook. Leave no stone unturned. You have to become a master in the market on everything that is going on in that particular area.
You are going to get a lot of insight from the people that you’re meeting with. But you’re also getting to get a lot from educating yourself on all the online stats, demographics, and comparable sales.
You’ll know the true value of a renovated property and what a bargain is once you see it. Then you can make an informed decision very quickly because you know the market value at the back of your mind.
Diversify your investments
It’s commonly preached that the best property investment is the one in your backyard. While there’s merit to understanding the area in which you’re investing, We believe that you’re truly limiting your profitability potential by only considering a small geographical area.
By considering investments in other states and cities you will have a large pool of available investments and ultimately better opportunities. Investing across a large geographical area also further diversifies your investments and protects your portfolio against the volatility of local markets.
Learn about market cycle theory
Try to invest in the right phase of the cycle. This is not speculating, but trying to generally understand what will happen with the important estate prices in the following five years.
Purchase your investments during the recession and early stages of recovery phases. This will enable you to earn significant capital gains in addition to income.
You don’t know the property you are buying
Most buyers will inspect a property a couple of times before they make an offer or purchase it at auction for RERA approved plots. But just how much effort they put into understanding the property is another matter.
Ask the agent the maximum amount of information as possible about the history of the property.
You would be surprised what you’ll find out
Take a glance around the property and see if you’ll find any visible signs of the type of damage that may prove problematic, like cracks within the walls that may indicate structural problems.
If you are buying a property consider getting an independent building and pest inspector to compile a report on the property’s condition.