Real estate – To invest or not to invest.

Real Estate: To Invest or Not To Invest.

Investors have to deal with evolving market dynamics and adjust accordingly. Or perish. This is true for real estate investing as well.

Given market volatility, is it logical to zero in on any one city or area for investment purposes and expect some degree of return?

The answer is in the affirmative. Despite short term uncertainty, realty markets tend to stabilise in the long run. It often pays to invest as there are quite a few opportunities for growth in different types of properties.

Real estate investors would need to think through their decisions though.

• Know Territories Better: Potential investors can take the help of experts working in real estate research to identify regions with immense scope for growth in terms of infrastructure and all round development.

• Procure Reports and Indices: Off-the-shelf reports and study results are now available from some research organisations working in this domain. One can access these reports and gain insights on where, when, and how much to invest.

• Identify the safer options: Investors can consider the Rs. 15-35 lakh band when looking purely for value enhancement, as these offer the best returns in the short to medium term.

• Know the questions to ask: A potential investor can also access important values and variables such as the property capitalization rate from organisations involved in real estate research. The property capitalization rate – to take a case in point - tells us how much a property costs and how much it can be rented for. Properties with less down payments and a greater percentage of returns in the form of rents can be a safe investment bet.