Real estate is one of the most profitable sectors to put your money in. In most cases, the valuation of your property increases, leaving you with the option to sell it for a higher price. It’s also a great way to secure the future of the next generation. Buying an investment property could be a lucrative way to maximize this wealth.
If you are contemplating buying a property in a premium residential area with the intention of renting it out, here are 5 things to consider to make it an extremely successful venture.
Assess Your Budget
When you are thinking of buying property, the first thing you should consider is your budget. You need to have a good understanding of your cash flow.
Once you own the property, you would have the rental income and tax deductions to deal with maintenance expenses. But until you start reaping these benefits, you must be financially secure to be able to maintain the property and pay for it.
If you are looking at availing a loan, ensure that you speak to your bank and get a pre-approval on your amount. This will give you an idea about the kind of properties you could invest in.
Take Ongoing Costs Into Consideration
When you buy the property, you will need to budget for a few things. If it’s an old property, you might need to invest in renovations; for a new property, you might have to install new furnishing and plumbing before handing it over to a tenant.
Take these expenses into account with insurance and emergency maintenance costs when financing an investment property.
Invest in a Growth Area
Your investment property’s value will only increase if it is situated in an area projected to soon become a hotspot. Therefore, you need to do your research, consult experts, and then make an informed decision about the property.
You also need to check the development plans for the area and its neighboring localities in the next few years, its proximity to existing hubs, and its connectivity to the rest of the city.
For example, buying an investment property in Aparna Luxor Park is a great idea right now. With Kondapur in Hyderabad being a rapidly developing area and booming up to be a real estate success in the future, your return on investment will be huge. Moreover, the rental averages in this area can be good enough to make profits in a short time itself.
Check the Age and Condition of the Property
Buying an older property might be expensive with the cost of renovation and repairs. The older and more dilapidated a property, the higher the fixing charges. If you feel that your rental income and the future growth in value of the property will not make up for this, you should probably look at a newer property.
Make It Attractive for Your Tenants
Depending on the area, you will have a profile of the kind of tenants you would attract. Most apartment complexes and gated communities in up and coming localities attract a crowd of young working professionals who look for facilities that are up to their tech-advanced lifestyles.
To attract good tenants and receive an adequate rental value, you might need to furnish the place, so that prospective homebuyers choose your property over another. Choosing secure gated communities and projects such as Aparna Sarovar Zenith will assure you of attracting a slew of stable and financially well off tenants.
The Bottom Line
Buying an investment property is a step in the right direction, considering that you have done your due diligence and have the financial capacity to back this investment. The search for your next investment property could end with Aparna Constructions’ premium apartments. Check them out here.