The real estate sector is India is witnessing a turnaround due to several factors. Since the infamous global slowdown in 2008, the sector has come a long way, even getting its first regulator – RERA in 2016. RERA hopes to make buying homes a simpler and more affordable process for consumers with more accountability on builders, and transparency in the ecosystem.
With public confidence in the sector increasing, and healthy demand-supply dynamics, investment is expected to increase in the sector. However, there are a few rules that need to be followed while investing in real estate, so as to ensure capital protection, and growth.
Location is Paramount
Perhaps the biggest factor to keep in mind is the location. Not all major cities give you the same benefits. A city such as Delhi, which is the capital of the country is considered a slow market, but you can always hope to get good rental returns. Demand in the capital city of a growing economy is bound to rise. Mumbai, too, offers great rental returns. Consider an up-and-coming neighbouring city such as Pune, where prices will rise quicker, with tremendous potential for long-term capital returns.
Choose The Right Locality
Each city has several localities, with micro-economic factors influencing its growth. Also termed as growth drivers, you need to look at markers such as employment hubs, educational institutes, infrastructure projects, the pay parity, entertainment amenities such as shopping malls and theatres, healthcare facilities, etc., to determine growth in the short to medium term.
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For example, Balewadi in Pune is close to the IT hub of Hinjewadi, along with specialty hospitals, educational institutes, Pune University complex, and the Mumbai-Pune Expressway, offering affordable housing across pay brackets. Avon Vista is a notable property with excellent connectivity to the rest of the city, whilst providing serene river views, fully-functional clubhouse with swimming pool, gymnasium, etc., along with sport-centric features such as a tennis court, mini football ground, jogging track, pool table, and more.
Identify Your Purpose
There could be primarily two reasons for investing in real estate – to live in the house, or to let it out on rent. If you’re looking to buy a house to make into a home, then identify your needs. The ideal home would be well connected to your workplace and other essential amenities while also being detached from the cacophony of the city.
This is where Kolte Patil Stargaze really shines. Situated amidst the rolling hills with the Sinhagad Fort on one side and the city of Pune on the other, it offers the best of nature while providing convenient city connectivity. Luxurious apartments with state-of-the-art amenities such as a clubhouse, swimming pool, gymnasium, multipurpose court, herb garden, manicured lawns and gardens, and more, it allows for a greater quality of life. Moreover, it is located close to the landmark of Chandani Chowk and is well connected with the other suburban localities.
The 1% Rule
If the purpose of your investment is purely for renting out, remember the 1% rule. It essentially states that a rental property must generate at least 1% of the purchase price every month, for it to be considered a worthwhile investment.
Plan Your Debt Servicing
It is ideal to purchase real estate with debt that allows a large down payment. This will reduce your interest outgo, and your monthly EMI, enabling you to manage your finances better. Also, ensure the interest rate is on the lower side, to lower your overall interest liability.
Whether it is the serene Kolte Patil Stargaze or the oasis of Avon Vista, investing in real estate has never been easier with home loans by Bajaj Housing Finance Limited. Get in-person assistance for site visits, and along with documentation assistance for a smooth and hassle-free process.