Real estate investors in India tend to enter into investment transactions for a long term. The property purchased is usually held for years with the expectation of the asset rising in value over the years. Time, therefore, is of utmost importance in such transactions. It has been noticed that the there is less clarity about the right time to enter into an investment. The timing of the purchase is the most significant factor in real estate investments. Ready flats and homes, mainly the fancy experience centres created nowadays, tend to attract the buyer’s attention. However, shrewd investors seek out less obvious opportunities. In the current day scenario, savvy buyers search for units in planned developments long before the first shovel hits the ground or they focus on land pieces which have growth expectancy shortly. In simpler terms, land that may seem far away from the city today will eventually be a part of the town tomorrow. India is growing at a rapid rate both economically and demographically; urbanisation is spreading thus making land purchases in remote areas an attractive long-term investment.
Residential developments are also smart investment options if purchased at the right price and at the right time. According to research the ideal time to buy an apartment or house would be six to twelve months ahead of the launch of the project. These investments are promising, but the investors need to be cognizant of the risks arising primarily due to construction delays and title uncertainties.
To enable investors to make shorter-term real estate investments in residential properties profitably and safely an innovative business model has been created known as property crowdfunding. This model helps the investors to obtain best prices in upcoming developments with mitigated risks. The following needs to be ensured:
Larger purchasing power with an aggregator helps in securing the best possible prices which an individual investor might not be able to negotiate. This improves the overall return on investment.
Investors must only invest in projects by developers with high credibility and strong reputation to protect themselves against delays and encumbrances. A project with a reputed developer ensures the quality of construction and design.
Any property must be purchased only after proper due diligence to ensure the property title is clear and there are contingencies in the form of heavy penalties in case of any delay. It is not uncommon for developers to cause delays on purpose and use the money collected in other projects which may seem more lucrative. Ensure that there are no harmful clauses and contacts are investor friendly.
Be well aware of the market pricing and geography to be able to steer towards projects that are sure to yield substantial returns.
An investor should be able to purchase according to his or her own will and comfort. Crowdfunding services help investors to choose smaller amounts in different properties to be able to diversify risk.
Investors are protected against risk by using third-party accounts for fund transfers. An escrow account adds an added layer of safety for investors.
Real estate is one of the oldest and most preferred forms of investment in India. It has long been considered as the soundest investment option. Getting in early and through the right medium can help investors grow their money safely and quickly.