Tips to invest smart in Pune's upcoming areas

Pune

Here are some tips if you are looking at new areas, both as an investor or an end-user. New areas are steadily becoming popular among small budget buyers. However, while you prepare to invest, do not go overboard. Keep the following in mind.

With a smaller budget in hand, one may look at plots for investment. Moreover, as far as traditional sentiments are concerned, independent houses have never really gone out of fashion. While you may plan buying a plot as an investor or an end-user, do consider the following tips:

-  If you are building a house, keep in mind that the development of the layout would take close to five to six years.

- For immediate rental returns, buyers usually prefer apartments. Please be sure you can wait for rental returns till the layout develops.

- Small investors should ideally go in for apartments due to the safety factor. Usually such properties are systematically managed and serviced by developers. Hence, it becomes an easier pick for buyers.

- If you are looking for capital appreciation, do remember that you have invested early in the development cycle and while you may have a price advantage, capital gains might take time and would stretch over a period of five to ten years.

- Do study the potential of the area. What is coming up in the future whether companies, housing or developer firms. Are the constructions there legal? Is connectivity going to get better?.

- If a metro rail (or any physical infrastructure) is coming up in the vicinity, there is good scope that property values will rise by 15 to 20 percent. Similar trends have been noticed in Delhi values along areas where the metro was constructed. It is always good to invest in areas where infrastructure is expected to boost real estate.

- Do your homework and know whom you are buying from. If a national bank or a recognised private bank agrees to sanction your home loan, your money might be safe. But do not hold back from your initial researches.

- Consultants from internationally famed research firms are of the opinion that a background check on the developer's payment history can reveal a lot. Any default in loan payments from the developer's end to banks or other financial institutions should be eyed with caution. One should always check with banks for the names of such defaulters in the public domain.

Check whether the developer has a credible partner as this means that the partner has done full due diligence on the project and bodes well in terms of its timely completion. The possibility of deviation of funds raised on apartment bookings or borrowed for a specific project to other projects also gets diminished.

If you are someone investing in upcoming areas, be sure of the potential of the location!

Sneha Sharon Mammen, Times Property, Magicbricks Bureau/ Pune


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