Buying a property to live or buying a property for investment


buying a property, real estate, nrihelpinfo

Things to consider when buying a property to live or for investment:

Whether it is buying a property to live or for investment purposes, it isn’t a child’s play. Years of saving and adequate planning go in buying a property in India, but there are a number of factors to consider if you are going to live there versus give out on rent or sell it later on. Both situations might require taking an ample amount of home loan, followed by monthly instalments flowing out of your income. Although there are some vital factors to keep in mind, let’s look at how both the situations differ.

Top Factors to consider while buying a property to live

Price of the property: The first step one needs to take before buying a house to live in is to fix a budget. Make sure you do early research and compare the property rates so that you know your desired real estate builder has given you a genuine quotation.

Carpet Area: Usually, a property’s area that is mentioned comprises the shafts, elevator space, stairs, the thickness of walls, among others. Though, the carpet area is the real area enclosed with the walls of a flat or apartment. It can be much lesser as compared to the built-up area.

Legal verification: Ensure that the estate you choose is legally authorised to be constructed. The builder must have all the required approvals and NOCs from area development authorities, electricity boards, water supply, and other authorities.

Apartment possession: You must be very precise about the possession of your apartment/flat. It is not unusual to get the possession much later than promised by the property builder. Sometimes, the developer asks for a six-month grace period, but the timelines need to be clearly called out, and also an explanation must be given in the case of delay.

Financing Banks: Some banks may be reluctant to finance certain builders, mainly due to a bad reputation. Hence, make sure your bank funds the project of your choice!

Location: This is an essential factor since the amenities and the environment nearby must be conducive for you to live. Be it involves water supply, electricity needs or security, ensure that everything is in place, and it is a safe location to reside in.

In contrast, some factors may differ when it comes to buying a property for investment. A strategic location is always preferred along with infrastructural needs. However, there are few more points to keep in mind here.

Factors to consider while buying a property for investment purpose:

Local or outstation preferences: This is an essential factor when you choose to invest your funds in real estate. In a case when it is a local property, it is much easier for you to manage or keep an eye on it, in a case when there is an emergency. While, if it is an investment out of the city, this would not be possible, but you might get higher returns. Make sure you keep in mind all the benefits and drawbacks before making this decision.

Capital appreciation or Cash flow: If you rent out your estate to some well-established brands, it is a safer choice. Instead of buying a flat, you could also go for a franchise and make some earnings apart from rent. This could also be a fruitful investment option.

Infrastructure and Location: These two factors remain the same as buying a property to live in. If your estate is strategically located, well-connected to the city centre and boasts excellent infrastructure, then there will forever be a higher demand among tenants, or you could receive a good resale value in the future.

Maintenance Budget: Make sure you always set aside a maintenance budget, since there could be unexpected expenses at any point. There could be some essential repair or any other problem that you must always be prepared for.

Whether you buying a property to live in vs buying for investment purposes, in either of the cases, you must understand your needs and situation before taking the plunge.

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