Real estate investments are a big business with heavy returns if done right. Rookie investors and anyone who is new to the real estate landscape have a general belief that it is like the golden-egg-laying bird that will continue to benefit them all their life once they have bought it, which may not be completely false but yes, there are terms and conditions to it.
In this article, we’ll show you some crucial road signs in order to help you reach the profit slab you’re aiming for with your investment.
Real estate investment returns are broadly of two types; short but recurring, and large and one-time.
Before investing, it should be clear to you that what kind of returns are you looking for, ultimately. If you want to retain the property for a long tenure, you should make a note of the following points.
Most real estate gurus suggest that the property must be held for at least 3 years before letting out in order to gain the maximum profit out of it. This has some reasons behind it. First of all, selling the property after 3 years doesn’t levy income tax on the profit and you can keep the sum without caring about the legal procedures. This will also hold true if you belong to the lowest tax bracket which lies around less than 2.5 lakh per annum.
It is an obvious fact that your long-term investment will amount to millions of rupees and your expectations of profit will be proportionate. So, selling it for a compromise won’t make sense until the same is the last resort. That is why you have to plan your selling date well. Study the market and infrastructure developments like a hawk. Temporary hikes and dips are not to be stressed on, however, should be wisely evaluated in order to take the selling decision. A property consultant will be a great help in this.
Whenever you decide on selling the property, start working on making it stand out in the locality. Added aesthetic value can fetch you an unexpectedly higher price on a lucky day. Look at the localities infra standards and renovate the property accordingly. You don’t need to spend a fortune on the redesigning, only a measured improvement is required. At the end of the day, good looking properties do sell out better.
Short term but recurring profits usually mean that you’ll be letting out the property for rent. Here are some ways of increasing revenue by rentals;
If you are looking to invest in a property that you plan to use as a rentable apartment/house, make sure that it has plenty of rooms and individually rentable units in it. If the case of houses, it is possible to construct a couple extra rooms to increase floor space, which will help you increase the net revenue you can generate from it. In case of flats, you’ll have to choose a high-value location with surplus demand.
People nowadays resort to local listings on the internet to find properties rather than straightaway heading to a broker. This makes it important that you enlist your property on all major real estate portals in your locality and provide with descriptive information about the same. Quick access to the property brightens the chances of a good return.
These were some quick tips to boost the value of your real estate investment returns, if you feel you need a more personalized advice or have any doubts in the above-mentioned points, please feel free to contact us! Spacio is always at open to your property questions.
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