7 Indian Real Estate Investment Tips for 2019

Well, the New Year 2019 is about to arrive and like always there are a lot of hopes, expectations and curiosity with regards to the same. What will be the political changes, changes in taxation, reforms in policies, income tax policies, etc and how will all that impact real estate in India ?

Should I invest or buy real estate in 2019 ?

As a New Year gift, ghar.tv offers 7 Indian Real Estate investment Tips for 2019.

1. Be Updated: There are going to be plenty of real estate investment and buying opportunities in 2019. The reason is simple – there is a lot of inventory that real estate developers & sellers across various locations including metro cities have been unable to offload in 2018. You need to simply keep on looking for Good Real Estate Deals. Be in touch with your local real estate agents as they know the pulse of the market on a day to day and on a micro level. They know which developers are under stress and which sellers are really motivated to negotiate & sell. You can also register with all leading real estate & property portals and set up property alerts so that you are always updated. This will help you grab a golden opportunity when it arrives. Also be updated about real estate policy changes, GST regulations, Stamp duty & registration fee changes, ready reckoner rate updates, circle rates, etc.
   
   
2. Build your cash reserves: While you are scouting for great property deals, ensure that you are invested in other instruments like mutual funds, Fixed Deposits, etc so that your bank balance is healthy & moving up all the time. This will give you the power to strike, negotiate and close a lucrative deal whenever it arrives & 2019 is definitely going to be full of such lucrative opportunities. All serious property sellers, especially real estate developers will definitely negotiate hard if they can see that you have the money ready and this factor alone becomes a strong negotiating tool for you as a real estate investor / buyer.
   
   
3. Check your CIBIL score & home loan eligibility: Another very important factor before buying a property is your eligibility in terms of procuring a home loan. This could be a game changer again when it comes to negotiations and deal closure as it gives a buyer a lot of confidence when sitting across the negotiating table.  Any real estate developer will be happy to negotiate and give a better price to you once he is able to see your readiness in terms of your own down payment contribution as well as a loan sanction letter. Please speak to a home loan agent or to your bank and get all the boxes ticked for your home loan and keep the loan sanction letter ready once you have decided to buy a property.
   
   
4. Make a comparative chart & Analysis: You can inspect multiple properties and end being confused in the bargain. However the prudent thing would be to shortlist all the important factors that you are interested in and then start speaking to a real estate professional or go on to property portals for property hunting. If you are clear about why you want to buy a property – for pure investment, for good rental returns, for short term investment, for a long term investment or for actual use, this clarity will help you really filter down options and ultimately freeze on that one perfect deal for you. You can do this with the help of a professional real estate agent who can guide you through the process based on various parameters and this kind of homework can be the difference between a great property investment and an average one.
   
   
5. Look at upcoming locations: When it comes to real estate investments, the key factor is always the location. If you buy in a well-established neighborhood where the prices have already reached their peaks, it will be difficult to find good investment properties. This is because you are already paying a huge premium as there is great demand and the supply is limited. This kind of purchase is advisable only when it is for self-use and when leaving the neighborhood is not an option on the table. Well in 2019, you will have a lot of supply from upcoming locations near Mumbai, Pune, Goa, Nashik, Gurgaon, Chennai, Bangalore, etc as there is a lot of infrastructure development that has been happening across India. You need to carefully analyze the trends and look at some of the most promising & upcoming locations based on the infrastructure growth and the future connectivity of such locations. This information is easy to procure today online as well as through other sources. Armed with this knowledge you can then invest in relatively non-competitive areas where you can get some of the most lucrative deals and a first mover advantage. In short your profit will be more or less guaranteed.
   
   
6. Integrated & gated community developments: It has been observed over the years that integrated real estate developments and gated communities fetch a better value than stand-alone buildings in most cases. With the fast, modern life as the time affordability decreases – people need everything close by. This is especially true for highly traffic dense locations like Mumbai, Pune, Bangalore where anyone would love to have their office, School, markets, shopping, entertainment close by. The home to work commute can be big factor when deciding on purchasing an apartment. Therefore if you can identify good gated community developments or integrated townships in upcoming locations, it would be good idea to identify such developments and invest in them at an early stage. This would ensure that within a span 3-7 years your real estate asset will be highly profitable both in terms of capital growth as well as in terms of a steady rental income.
   
   
7. Understand RERA in detail: RERA (Real Estate Regulatory Authority Act) was launched a couple of years ago. As with any large scale policy change, the effects of RERA have just been felt in the recent months. As this policy has now become ingrained in the Indian real estate ecosystem every real estate investor or property buyer should make it a point to understand RERA in all its details very properly. This will help you to make informed decisions while purchasing under construction properties in India. As mentioned earlier there are a lot of under construction projects in Mumbai, Bangalore, Delhi, Navi Mumbai, Pune, Nashik, Chennai and other locations that will be on offer in 2019. Understanding RERA and its implications will help any property buyer or property investor to have complete clarity with regards to the risk, advantages, benefits and all other aspects of his or her hard earned investment money.