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A smart investment has the potential to change our lives, providing us sufficient funds to live our dreams. Today, most of us have an investment portfolio comprising of a number of investments, be it stocks, gold, bonds, government schemes, etc., but one of the most underrated investment in recent times remains to be real estate. Given the huge economic boom in most Indian cities, the average income has increased, providing added incentives to invest for the future and real estate could be the ideal investment choice for you.

Why invest in Real estate?

Owning real estate at any point in time is an investment strategy that can be both satisfying and lucrative. Unlike stocks and bond investors, prospective real estate investors can leverage to buy a property by paying a portion of the total cost upfront, then paying off the balance, plus interest, over a period of time, in some cases reputed financial institutions / Banks offer funding up to 80% percent on GLV (Guide line Value) for approved plots.

Another reason to invest in real estate is its good exit potential, Real estate has a low and, in some cases, negative, correlation with other major asset classes—meaning, when stocks are down, real estate is often up. This means the addition of real estate to a portfolio can lower its volatility and provide a higher return per unit of risk.

However Real estate investment comes with certain risks and one should keep the following points in mind before investing.

1. Research:  Doing your homework before you step out to look for a property is critical today. With a number of projects coming up, it can be confusing to choose the right real estate, do an extensive market research on fast appreciating lands that are sold at very affordable prices, aspects like location and market rates play a vital role in determining the return you get on your investment

1. Legal Due Diligence: The papers of a property are perhaps the most important factor one should consider, for it is possible for someone who is not acquainted with the real estate industry to get scammed into buying a property with fake papers. Buying a property without clear titles can lead to long drawn court cases or litigation, which essentially nullify the investment, have a legal expert scrutinizes the property documents to ensure that the title is Clear, Marketable and free from all Encumbrances.

1. Financial Aid: It is important to calculate the finances you have in order to ensure that your ends meet. While it is easy to get loans from banks, calculating the interest and other factors is crucial. Some reputed financial institutions / Banks offer funding up to 80 % on GLV.  

1. Custodial Service: Reach out to reputable companies that offer custodial services, as it is important to keep the property neat and safe. This option is almost mandatory for NRI land owners who abroad and elderly people.

1. Talk to your neighbors Talking to the neighbors is a good thing, given the fact that neighbors aren’t salesmen trying to sell you the property, one can get a clear picture of the real estate they intend to buy. This can help you get a first-hand perspective of how things are in a locality, helping you narrow down any problems or areas which could dilute an investment.

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Owning a property can be the smartest move given the changing dynamics of our times, and keeping these simple points in mind can point a person towards the right path to investing in real estate