Buying a property to live VS Buying a property for investment: Things to keep in mind
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, but there are a range of different factors to consider if you are going to live there versus give out on rent or sell it later on. Both scenarios might involve taking a substantial amount of loan, followed by monthly installments flowing out of your income. Although there are some significant factors to keep in mind, let’s look at how both the situations differ.
Buying a property to live: Factors to consider
- Price of the property: The foremost step one needs to take before buying a house to live in is to fix a budget. Ensure you do your research and compare the property rates, so that you know your desired builder has given you a genuine quotation.
- Carpet Area: Generally, a property’s area that is mentioned includes the shafts, elevator space, stairs, the thickness of walls, among others. However, the carpet area is the actual area enclosed with the walls of a flat. It can be much lesser than the built-up area.
- Legal verification: Make sure that the property you choose is legally authorized to be constructed. The builder must have all the requisite approvals and NOCs from area development authorities, water supply, electricity boards, and other authorities.
- Apartment possession: You must be very clear about the possession of your apartment. It is not uncommon to get the possession much later than promised by the builder. Sometimes, the builder asks for a six-month grace period, but the timelines must be clearly called out and an explanation must be given in case of delay.
- Financing Banks: Some banks may be unwilling to finance certain builders, primarily due to a bad reputation. So, make sure your bank funds the project of your choice!
- Location: This is an important factor since the amenities and the environment around must be conducive for you to live. Be it water supply, electricity needs or security, make sure everything is in place and it is a safe area to reside in.
On the other hand, some factors may differ when it comes to purchasing a property for investment purposes. A strategic location is always preferred along with infrastructural needs, but there are some more points to keep in mind here.
Buying a property for investment: Factors to consider
- Local or outstation preferences: This is an important factor when you choose to invest your money in real estate. In case it is a local property, it is easier for you to manage or keep an eye on it, in case there’s an emergency. On the contrary, if it is an investment out of town, this would not be possible, but you might get higher returns. Make sure you weigh all the pros and cons before making this decision.
- Cash flow or capital appreciation: If you rent out your property to some well-established brands, it is a safer option. Instead of buying a flat, you could also go in for a franchise and make some profits apart from rent. This could also be a lucrative investment option.
- Location and Infrastructure: These two factors remain the same as buying a property to live in. If your property is strategically located, well-connected to the city center and boasts great infrastructure, then there will always be a greater demand among tenants or you could get a good resale value in the future.
- Maintenance Budget: Always set aside a maintenance budget, because there could be unexpected expenses at any point. There could be some urgent repair or any other issue that you must always be prepared for.
Whether it’s buying a property to live in vs buying for investment purposes, Aparna Constructions has a range of offerings. Be it 2, 3, 4 or 5 BHK, you can opt for apartments in gated communities as well as luxury villas. There are also plots that you can buy in Mokila and Shankarpally. Apart from offering high standards of living, these residential complexes offer amenities such as a swimming pool, gymnasium, a cafeteria, top-notch security as well as full power back up!
In either of the cases, make sure you understand your needs and situation before taking the plunge.
Last updated on September 14, 2018