There is Bible for every field in this world but when it comes to investing. It’s only what the next door preaches. Especially in the case of real estate investing. As for us, this should have been part of our education system.
As the topic states this article is for beginners only, we will keep it very simple.
Let’s make life simple by understanding how to make your real estate portfolio in these simple steps:
Understand Real Estate
The first step is to understand what is real estate. “Real estate is any property or structure attached to the land or the land itself, man-made or natural.” Real estate can be residential, commercial or agricultural, or in Demat form. The house, the office, the mall you shop in, or the land on which the grains grow, everything is REAL ESTATE.
Analyze The Need
Once you have understood what is real estate it’s important to analyze its need. You need to figure out whether you need a house or a shop. It may be an office or agricultural land. Is it an investment or for self-use? We don’t term a house where you stay as an investment. Investment is anything that is not for self-use.
For example, my dream was to own a house to my first investment was an apartment. Likewise, you need to analyze what you need or desire. If you already own a home, your next investment should ideally be a shop or office.
Budget
This is the most crucial part which changes all aspirations derived from point no. 2.
It’s important to know your budget and what amount you can save or shell out.
- Amount of down payment or upfront payment you can pay.
- The amount you can pay on a monthly basis in case you intend to finance the property.
So, if I have a savings of 3 lakhs & out of it 1 lakh is what I need to keep for emergencies then Rs. 2 lakh is what I can pay as a down payment. You need to identify what amount you can spare on monthly basis to derive the EMI. Once calculated, you will be able to arrive at the right budget.
Hunt the property Before Investing
As now you are ready with the planning it’s time to hunt. You can hunt properties through various media. I have listed some of the common below:
a. Online portals
b. Newspapers
c. Billboards
d. Radio
e. Friend or relative
f. Brokers or agents
I find this the most tedious job. I would recommend that you skip this part & jump to the next point.
Real Estate Consultant
I recommend you consider this as the main point. Immediately after you decide to start investing in real estate, approach a consultant. Hire the best real estate consultant in town. They are professionals with vast experience in the field of real estate. They will help you in the following manner in a real estate transaction:
a. Search a property
b. Finance from financial institutions as per your terms
c. Carrying out the legal checks on the property.
d. Generating income from the property
e. Maintaining the property
f. Reselling the property.
g. Tax planning with regard to your investment.
Financing
This point applies only to those who don’t have the funds to buy the property. Once you have completed the above steps, it’s time to approach the banks. There are various finance options available in the present Indian market. You can also get it tailormade as per your need. Kindly note that financing is for longer tenures so a strong vision is important in this case.
Legal
Now that you have chosen the property & financed it, it’s time to start investing in it. You need to study the agreement in detail. Also, it’s advisable to buy RERA-registered properties only. It’s better to hire a real estate consultant to help you with this.
Possession
Now it’s time to take possession of the property. Kindly check in detail whether you have received it as per the commitment. It is better to cross-check everything at this stage before signing off than chase them later.
Congratulations you have completed your first real estate buy transaction.
It’s time to celebrate & also plans your next investment to grow your real estate portfolio.
You may feel to contact us for any queries about real estate investments.
You may write to us for any guidance with regard to real estate investments or finance on info@mevolvee.in
For any suggestions with regard to designing your house, you can write to us at info@mevolvee.in
So, in case you are considering buying a property, meet a real estate consultant today.
We assure you wealth generation bits of advice via real estate to the best of our knowledge.
You can always hire our interior design service to design your dream home.
#Happyinvesting #Happynewyear #preleased #investmentadvice #realestateconsulting #interiordesigning #interiordesigners #pune #RERA
Read our previous Blogs:
5 Ways to Invest in Real Estate
Simple Ways to Invest in Real Estate
The Value of Commercial Real Estate
