Buying an investment property is a big and risky decision. At the same time it can be a great way to secure extra income or just obtain a nice home for you and your family. Before you make a selection on the property you want to purchase, however, there are few tips to keep in mind. Few small decisions can make the difference between a successful deal and a stressful disaster. One of the most important things to consider is the developer or builder you want to work with. Well-known, highly respected companies like Unitech are always a good place to start as their reputations speak volumes as to the quality of the property you will receive.
Type of Property
Silicon India presents an outline of the residential housing boom throughout India, especially in the area of Gurgaon. They note that prospective buyers in Gurgaon can choose from a variety of property types, from villas and stand-alone homes to purchasing 3 bhk flats in an apartment building. You can even buy 2 bhk flats in Gurgaon. The many luxury properties are being offered in high end, prime locations like the Golf Course Extension Road sector and are convenient to the heart of Gurgaon, shopping, dining, and entertainment, including the many exclusive golf courses in the city.
A 3 bhk flat is perfect for newlyweds looking to expand their family, or for those who already have children. A 2 bhk unit is great for a single professional, a couple who does not intend to have more than one child, or even for investors looking to purchase properties to rent to college students or tourists. With several universities in Gurgaon, buying flats as investment properties can be a great way to earn extra monthly income through renting out individual rooms or entire units to college students looking to live off-campus.
Protecting your Investment
The Times of India advises that prospective buyers take steps to protect themselves when planning to purchase properties for investment. One important step is to do thorough background checks on the developer or builder you intend to purchase a flat, or an apartment building from. You can do these checks yourself by looking online for customer reviews, checking with the housing development agency, and going to an existing property and asking current residents about their experiences with the company. If doing the background check yourself seems like too much effort, The Times notes that you can take out a bank loan for part or all of the sales price, thus ensuring that the bank will do the necessary checks to secure their investment in lending you money for the purchase of property. The Times further suggests that you follow up protecting your investment by insisting that the builder or developer provide you with a written contract, outlining all of the details about the property and costs to purchase the flat or building you select.
Cost Awareness
Prospective investors should be aware of all of the costs involved in purchasing property in India. Global Properties gives a run-down of all of the extra fees that accrue when purchasing property: these fees are in addition to and dependent on the sale price of the property you seek to purchase. Buyers can expect to pay between seven and 13 percent above the sale price in fees such as stamp duty, registration fees, legal fees, and realtor commissions. Each of these fees is calculated as a percentage of the sale price: percentages are determined based on the circumstances of the sale – whether you are making a purchase as a single individual, married couple, senior, or corporation, the region of purchase, and whether you purchase a ready to move or under construction property, explains Global Property. After these costs are factor, there are also the monthly or yearly charges for amenities like parking, club memberships, and maintenance; if you are intending to rent out your investment property these after purchase costs can be factored into the amount of monthly rent you charge your tenants.
Who can Invest
India has strict rules regarding who can invest in and own property in the country. Of course, residents of India can purchase property, as can Non Resident Indians, meaning people of Indian origin who reside in another country. However, The Times of India explains, non-residents who are not of Indian origin may not purchase property in the country until they have met residency requirements that equal approximately half a year of residency.
Investing in property can be a great way to secure a home for retirement, diversify your investment portfolio, and secure extra monthly income. With the current housing boom in cities such as Gurgaon, top notch companies like Unitech are offering luxury 2 bhk and 3 bhk properties with high end amenities and all of the conveniences of a metropolitan city. Consider all of the costs, the reputation of the builder, and your specific property needs before making a deal and you will meet with great success in your investment venture.
