Investing in Real Estate is an arduous and time-consuming process. Every little detail needs to be just right to ensure that the investor gets a desirable yield out of the property. Hence, knowing what you’re getting into, how to go about it, and most importantly, questioning why it is the best alternative for you is essential. These questions will not only give you clarity, but they can also serve as tools that you can use to slash through the dense and extensive jungle of affordable real estate in Gurugram. Keeping that in mind, here are a few rules of thumb that every prospective property owner must know:
1. Check for vacancy
Many investors across Gurugram use the percentage of vacancy in a real estate project to measure management, rent, demand, area, etc. If a property has a high vacancy, you could be sure that it isn’t exactly popular in the real estate market. Furthermore, it could also be an indicator of low maintenance, something you as an owner would be responsible for. All of these factors can be judged by analyzing how vacant the property is.
2. Spending money prudently
For an investment to have a greater yield, it is needless to say that the money you do put in needs to be reasonable. Several experts suggest that it always helps to buy any affordable property at a discounted or fair price. Doing so would increase your chances of getting a fair return from the property you have invested in. Paying ‘retail’ wouldn’t help and further skew the yield to investment ratio more towards the undesirable side.
3. We are employing an extensive reading of the terms and conditions
Investors must interpret and understand the terms and conditions of the lease being offered to them. These terms and conditions could make or break your deal regardless of great the location of the property is or how economical it is. You could always employ an expert to go through these conditions for you and help you decide if they’re best suited for your context or not.
4. Be aware of the Capitalisation Rate
The capitalization rate refers to the ratio of a property’s Net Operating Income and its original value. This involves a whole lot of research and reaching out from your side. Consult brokers or other fellow investors in Gurugram to know better how the property you’re looking at fares. The cap rate allows you to judge how great the return of the property could be.
Across the countless affordable housing projects in Gurugram, choosing the ideal property for investing in is a pipe dream. But, A smart investor aware of these rules of thumbs and well-researched can undoubtedly reach that goal, however unreachable it may seem.