Why Real Estate Is Not Quite a Fail Proof Investment

Real estate can be a great investment, but it can also be a poor investment. Just like purchasing stock, it’s important to buy the right property, but the right property is just part of the equation! You also need the right tenant, and the numbers have to work. Here is the big picture overview of things you’ll need to consider if you’re looking into investing in India realestate market.

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Consider these factors when choosing rental property:

The Location: The neighborhood influences the cost of the property in Delhi NCR, type of tenant, vacancy rate, rent, and the likelihood of experiencing any appreciation.

Property Taxes: It’s difficult to predict what the property taxes will be on any individual piece of property. They can be much higher or much lower than expected. Be sure to verify the property tax information.

Schools: Property in better school districts appeals to tenants with children. Rents will be higher in these areas.

Repairs: Be sure you understand just how much it will cost to make repairs now and in the future. How much longer will the roof, furnace, and air conditioning unit last? How is the exterior? Expect to paint the interior and have the carpets cleaned every time you have a new tenant.

Property Cost and Rent Expected: At the end of the day, the cost of the property (routine maintenance, HOA, etc.) and the amount of rent you can expect to collect are the most important factors.

Once you find an appealing property, use these tips to help you find the right tenants:

Job: Check on your prospective tenant’s employment history. Does she change jobs every 6 months? Does he go for extended periods of time without a job? Can his current salary afford the rent?

Credit History: If a prospective tenant has done a poor job of paying her rent in the past, there’s a good chance she will continue to do so in the future. Be sure you know the credit history of everyone you consider allowing to live in your property.

Interview: Most of us have been around long enough to have a good feel for whether someone is a good person or not. Our intuition isn’t foolproof, but it’s far from worthless. When you’re talking to a potential renter, ask yourself if you would trust them. Do they seem to have their life together?

Ask yourself, “Do I believe this person will pay me on time for the next year?”

Some states make it extremely difficult to evict people, so choose your renters wisely.

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Investment in Real Estate - A wise decision

Tags : Investment in Real Estate, Investment in Commercial Property,Investment in Delhi NCR, Cosmic Projects,Cosmic Structures.