Rarely do we get rich from our jobs alone – our time is limited for active working. To achieve financial freedom, we have to earn a passive income. Smart investments in real estate can bring you big returns and help you grow your net worth.
Real estate investments can be as intimidating as investing in stock and other financial derivatives. But once you do it right, it will provide excellent ROI and great tax benefits.
Bangalore performs better than other Indian cities as price increases have been reasonable and projects are executed better. Bangalore has perceived an 18 percent rise in home prices. Compare this to other cities such as Chennai, Mumbai, and NCR with 22 percent, 26 percent, and 48 percent, respectively.
Most property developers in Bangalore have perceived real revenue boosts in the last few years. This speaks volumes on the prosperity of the community and improving ROI of real estate investments. Let’s dive deep into the key factors behind safe and rewarding investments in Bangalore real estate.
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Enhance your knowledge on real estate sector
Real estate investments can be risky due to the frequent market fluctuations, conditions in the locality, average income, etc. So, keeping yourself educated about the local real estate market is one way to make safe investments. The best way to edify yourself is through the internet itself. There are real estate company websites that can give you the information you need for making the right investment choices.
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Look for areas with good connectivity
The launch of Namma Metro in Bangalore is paving a way to a much-awaited boost in real estate investments. Convenience in public transport is extremely essential for Bangalore, especially due to its high traffic problem. The improvement in transportation will cause the surrounding properties to be valued higher. Proximity to a metro station is something Bangalorean homeowners would love. Therefore, invest in such properties with good connectivity.
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Refer to the Real Estate (Regulation & Development) Act
Real Estate (Regulation & Development) Act (by RERA) has been enforced since May 2017. The Act strives to safeguard real estate buyers, sellers, and developers as well as boost investments in the industry. The Act makes it mandatory for all developers to register their ongoing and new projects with RERA. Approved registrations have to be published on the RERA website as well. Invest only in the properties which are authorized by RERA and they will command maximum returns.
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Extract your credit report
Are you a first-time investor? It’s important to get your credit report from CIBIL before starting your home investment. A great credit score is extremely important if you are applying for home loans. It will fetch you attractive interest rates and save on other charges levied by banks. It will also give you the loan credit faster.
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Consult a good real estate agent
Here are some of the reasons for consulting a good real estate agent, who can make it worth your time to invest and ensure your expected return. They know the localities really well, so they can pre-scan the properties and remove the ones that won’t produce any returns for you. They have excellent knowledge of the localities. Thirdly, an agent is a good judge of the optimal price of a property. So, you’ll know that you are paying the right price, minus the agent fee. They are also professional negotiators, so the best price is practically guaranteed.
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Look for discounted properties
According to Warren Buffet, you need to be greedy while others are fearful. There are always chances for properties to be discounted and underpriced in the market. You can identify such properties easily by consulting with a real estate company. You can escape paying the full price to such properties and in the long run, it will turn out to be a handsomely rewarding investment.
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Development of IT and infrastructure
Bangalore is one of India’s biggest IT hubs, and this fact has a major effect on property valuations. When you ask yourself where to invest in Bangalore in 2018, think about areas with high IT investment and infrastructure development, such as East & South Bangalore. Such areas have traditionally paved a way to better urban development and an increase in the number of white-collar professionals. Those are the areas which will steadily grow and produce handsome returns on investment.
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Builder reputation
Are you looking for premium properties, you may come across lots of builders who offer them. Such properties will also command a premium price tag, but they will also provide great ROI. Builders invest in the brand building and reputation maintenance. This is why such properties are definitely worth it. Such premium brands are sure to be more profitable than value or mid-market segment.
Conclusion
Which are some of the areas where you could invest in Bangalore? A few promising localities are as follows.
As you can see investors seeking long-term returns will find many great options in Bangalore real estate market. Most such real estate hubs are self-contained with several living amenities—hospitals, parks, retail stores, schools, colleges, and restaurants. So, make sure you follow these tips and get the best ROI on your real estate investments.