Real estate investments have globally proven to be a rewarding investment class. It is also gaining momentum in India, and is set to grow at an estimated rate of 30% in the decade to come. In 2017 alone, the real estate industry in India grew by approximately 7%. However, earning money from your real estate investments can be, both enticing and tricky. So it is important to understand the factors and the market that makes it possible for you to profit from such investments. Whether you are looking at NRI property investment in India or to earn rental income, you can profit from your investment simply by following the below steps.
Begin by finding the growth corridors: Investing in properties in cities like Mumbai, Bengaluru and Pune has yielded profitable returns in the past few years. But while location is one of the necessary factors in property investment, it should not singularly drive your basis for investment. It is necessary, to consider the available growth corridors. A growth corridor is essentially a property which compliments easy transit routes, educational and health care institutions, shopping centres and other public spaces. In a city like Mumbai, you can consider investing in new projects in Thane Ghodbunder Road, which has become the up and coming neighbourhood thanks to real estate giants like Hiranandani Constructions, T Bhimjyani Realty, Lodha Group etc., who’ve come up with some great residential projects, all in close proximity to the aforementioned amenities, making it a lucrative growth corridor.
Consider the rental income: If your purpose of investment is to yield rental income, real estate is a good option as it can contribute to both, capital appreciation in the long run, and help you pay a part of your EMI, if you’ve purchased the home on a bank loan. Investing in locations which are connected to economic opportunities always offers better returns. The upcoming metros and the already established international schools, health care and hospitality centres makes investing in new residential projects in Thane even more attractive to the renter, who can have easy access to all the amenities and facilities nearby. Besides, Thane’s new role as the Silicon Valley of Mumbai has contributed to its position as a great Mumbai locality for rental income.
Consider the hold period: As a locality grows an upgrades, it draws an increasing demand from investors and homebuyers. But you must remember that every property goes through its ups and downs; you won’t always see sustained growth in a single location, even if it is in posh areas like Colaba, Bandra or Juhu in Mumbai. As such, the ideal period of time for one to remain invested in a property is about 4-5 years, or longer is possible. During this time, fluctuations are normal but a patient investor is guaranteed to earn a profit. NRIs looking to invest, can find out more about the property’s growth by visiting the NRI corner.