8 Things you need to know Before your First Property Investment

1. 8 Things you need to know Before your First Property Investment Although you can have numerous examples of people who have managed to earn fortunes by investing in a real estate property, but you must also know that there are various risks associated with it as well. Irrespective of the reason behind which you are investing in real estate, you need a lot of capital in your hand. And you would also like to take every precaution in order to save yourself from any grave loss. You will always observe a shortage of plots in the popular areas. This is the best opportunity to invest in a RIICO Industrial Plots. If you are going ahead with the first real estate deal, then it is essential for you to understand certain things before finalizing your first real estate deal! Be Practical Generally buying a new home is a dream for a middle group person. People tend to have many aspirations with their new home and also tend to get emotional regarding their choices. People prefer to listen to their heart rather than being practical. This nature can be perfectly fine, but in order to save you from many fraud and loss, think it as a business deal and negotiate logically for the best results.

2. Research This is a very important factor here. Whenever in your life you feel like investing in a property, do a thorough research about the area, its rates and its future prospects. Nobody wants to bet on a losing horse and so you should also not go any property with a poor resale value. Make this research more finance oriented rather than being emotional. You can also consult an experienced real estate agent or a local citizen in order to analyze the overall value of the location. Down Payment You have to sit down and plan your finances before finalizing a property deal. Mortgage insurance is not available for investment properties. So you need to manage your funds and don’t forget to secure some more money for renovation expenses. Analyze Analyze all your expenses in advance. It is absolutely fine to consider smallest of the things and getting paranoid at times. You are about to invest lacs of capital into a venture and you have every right to analyze it up and down. You can start with the capital you currently have and then calculate the total loan you would require further. Consider various hidden costs like renovation, operation costs, etc. in your calculation. This calculation is very important to keep you ready for all the expenses. GoforaMarginalCost According to the experts, it is always a wise decision to invest in a marginal property. For example, if you have a budget of 50 lacs, then you should go for a property of approx. 40 lacs and save the rest ten lacs for renovation and other purposes. Remember you will require some money for renovation before reselling it.

3. Pay your Debts If you are planning to go ahead with your first real estate investment, then it is profitable to pay off all your debts beforehand. For example, student loan, car loan, medical bill, etc. Applying for a property loan is a big amount in itself; therefore you should get rid of all your other debts in time. This strategy can also help you be relaxed as you need to concentrate on a single loan repayment planning only. LoanOptions You can have different loan options investing in your first Flats in Jaipur or any other real estate When it collecting capital for your investment, consult your banker for various loan while property. comes to options applicable to your income category. Going with a right loan option can definitely make a positive difference to your current situation. You can take the help of internet to browse through various loan options available for you. Choose Partners Carefully Many people prefer to borrow money from their friends or relatives rather than approaching a banking company. You should be very careful in this option and should consider all the probable out comes of this deal. Make sure you have a good rapport with your friend from whom you are borrowing money. Investing in a real estate property is just like a business deal. You never know when you can hit jackpot or when this can turn into a bad experience. If you have a sound financial knowledge and an expert companion to advice on investment related issues, then your chances of having a beneficial deal is high. Always ensure to check the sale deed of the plot you are intending to invest into. Check if the property rights are clear or disputed. In case of any doubts or discrepancies, it is better to drop the deal than regretting at a later stage