Risks in Real Estate

Date : 2-May,2019|Read: 5 mins

Investments are similar to a coin. They have benefits which come with risk. Growth and risk go hand in hand always. What's important to understand is possessing the ability to make a smart decision about an investment that helps in sustaining short term risk and manifesting long term growth.

Real estate investments are a unique option being able to reap growth led benefits on both, short term and long-term investments. The investor's acumen for making the right decision at the right time is quintessential to the prospects of any investment.

Investments can be very dynamic which is why it becomes imperative for an investor to be pragmatic about the fluctuations in the financial status of the investment. Determining the future ability of the investment to perform against a volatile market is critical.

Risks In Real Estate Investments

Real estate investments have been known to be safer compared to other investment options. A thorough scrutiny of the various factors helps one understand the scope of the investment. These factors decide the fate of any real estate investment. If managed right any real estate investment can be profitable, else it can be risky.

Let's find out how and why

The factors are:

  • Location: A property with prime connectivity, numerous travel options and high standards of security is said to be in a prime location. It is immaterial if the property is for living in or an investment, the locality that the property is in plays a huge role.

  • Finance: Ascertaining whether the financial aspects of a property are transparent is critical. The ownership, medium of purchase, pending transactions, valuations, taxation, and additional costs involved must be known to the homebuyer before making a decision.

  • Titles and Approvals: When the transaction of sale between the homebuyer and the seller is complete, the buyer receives certain documents from the seller. These documents are the Title deeds of the property. Title Deeds are the ownership documents valid in all institutions of the land that guarantees the ownership of the mentioned property to the person in possession of the title deeds. Not only this, the property must have approvals from all concerned authorities that assure the safety, legality, and security of the property. Any property must have required permissions from the municipal, government, police and tax authorities that certify the property as legal and compliant property.

  • Size of the property: The value of a property is defined by many metrics out of which a key one is the size of the property. Size plays a role in the growth, ability to expand and future scalability of the property. Scrutinizing on the worth and credibility of the property involves determining the value of the property based on the size and standards of construction.

  • Appreciation and Rental Yield: The resale value of a property determines the resale value. Resale value has factors like standards of construction, age, health, standards of living, travel options, and connectivity. Rental yield is the returns that the owner gets from the rent collected. It is the ratio of the yearly rental income to the total amount of investment.

  • Delivery on time: The most critical factor of all is the timed delivery of the property. When the developer or the seller promises delivery of the project on time, it must be made sure that the promise is kept. Delay in delivery can mean loss of revenue and the value of a promise in the market.

  • Standards of construction: The scope of the property is defined by the standards of the construction followed by the property developer. Value of the property remaining consistent relies on the standards of construction followed.

  • Developer Reputation: Every buyer must first find out the reputation of the developer of the property as a good developer ensures quality and reliability on the construction of the property.

Conclusion:

Like any investment, properties also have certain factors that can make it a positive or negative investment. Therefore, it is critical to understand all the risks involved in an investment before even thinking of making it. Buyers in Banaglore enjoy availability of top quality projects by top developers. They must take due advantage of this.

Homes247.in Experts View:

As per the latest trends in the Indian Real Estate sector, various factors must be taken into careful consideration and selection of the best from a variety of options is a critical aspect.

Consulting an industry expert at Homes247.in who has the acumen for streamlining this whole process and ensure that all the needs of the home buyer are met is key.

A real estate aggregator focused on satisfying customer’s requirements rather than commercial gains, someone whose offerings are unbiased and tailor-made for the buyer’s satisfaction is key to efficiency and profitability.

We understand the plight of the busy white collared employees who struggle to manage their property efficiently due to the lack of time.

In a city like Bangalore which has exceptional builders and developers who maintain quality of construction and deliver on time, buyers in Bangalore must take advantage of the added benefits that a buyer in Bangalore gets.

Hence, we strongly urge you to refer to our home guide and get in touch with us on all your needs, doubts and queries and let us help you find your dream property or investment.

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