How to get Maximum Returns on your property investment

Dec 20 2018

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.

Increasing Investment returns for the long run

  • Retain the Property for at least 3 years

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.

  • Plan Your Sell Well

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.

  • Work On Property Aesthetics

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.

Increasing Investment returns for short-term gains

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;

  • Go For More Floor Space

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.

  • Make the Property More Discoverable

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.


5 mistakes to avoid in buying a property

Dec 19 2018

Buying a property comes in handy with loads of stress.

For years we have been dealing with clients, and trust me, everyone’s different in some or the other way.

For all these reasons, we decided to share this blog.

After reading this you will know the most common mistakes buyers are making.

We promise, to keep it concise and informative.

Okay, so let’s begin.

Once in a while, everyone thinks of buying a property.

And, especially for Indians, having an own place is more than just a property owned.

Investments like these require some serious introspection, as they call for the life long saving of yours.

Being a buyer you have already so much on your plate, which includes understanding the different facets of buying which includes mortgage, requirements, earning vs expenses, et al.

While we were talking about what’s best for you in our previous blog, rent or purchase, whilst speaking of the everything you should know before going for either.

Now, it’s time to extend your knowledge about things you might do wrong before buying:

1. Paying token money for reservation

This is very common these days, people paying token money for reserving the house. Unless there is no documentation, there are bright chances that you might get betrayed.

And, many have been!

Especially in Mumbai, or we can talk about any metropolitan, where the demand for properties is huge.

You are undoubtedly gambling with your future. Plus, you have no security of that transaction, so Do not get into any fraud like that.  

Also Read: Why is it best for NRIs to invest in Real Estate?

2. Not discussing complete costs with the broker

Besides the actual cost of buying a property, there are some costs you might be overlooking.

So, this is one of the most important subjects you should be speaking to your consultant about.

What are the fixed and variable costs?

For instance, investing in real estate binds you to pay taxes, then moving charges, renovation costs, then transportation, and so on.

For instance, there is going to be a difference between what banks indicate and the loan you actually get.

3. Waiting for the appropriate time

Are you seriously thinking property prices will go down anytime in the future?

If you are looking to purchase a property in any metropolitan or big city, this is something next to impossible.

Stop letting the baffling media reports mislead you.

There is a huge influx in cities, plus real estate construction acquires 20-30% employment of the nation, then you see, on the top of which land is one of those things which they are not manufacturing anymore, and there are many other reasons why this is the lowest price it can be.

So, wait no more and purchase a property.

Also, Read Pros and Cons of buying a home in Mumbai.

4. Disregarding your budget

Like I already explained, there are going to be hidden costs in purchasing a property.

So, if you fall in love with a home you just saw, which is out of your budget.

Firstly, don’t let the seller know, for obvious reasons.

Secondly, try making negotiation, but do not go beyond your set budget.

Remember, you do have financial constraints and banks don’t spare the loan takers.

5. Not consulting Spacio Realtors

It is cardinal to consult reliable and eminent Consultants and brokers to get the best deal.

You can not quite comprehend the market without a professional.

Being into consulting and broker services for long enough, we have had plenty of experiences where people choose to do solo hunt for a home and end up getting duped.

Also, Read Reasons to buy a property before 2017 ends.


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