Every single purchase in real estate is an investment. If you want to buy a residential property in Bangalore, it will be an investment. But just because your purchase is an investment, it doesn’t necessarily mean that it’s a good investment. A large number of buyers believe that a home is always a good investment. Before you buy a house, you must know the difference between an investment property and an asset with equal to low returns.
When you buy a residential property, you take money from your account and put into an asset expecting that its value will go up with time. You are taking a risk and putting your money from one safe asset to another. For example, you are taking money from your bank account, mutual funds, and savings to buy a residential property. It is an investment because you are expecting value appreciation. But you cannot call it a good investment.
On the other hand, the real meaning of a good investment in real estate is you buy a property, hold it for a long time and then sell it or flip it with a better one. Over time, most residential properties in Bangalore should appreciate in value. It will help you earn money. The problem with many buyers is that they don’t want to wait. Real estate investment is a long-term strategy. You buy a property and you wait for the value to go up. Those playing short term rarely get benefitted from homeownership. With transaction cost and other associated costs, you can’t expect real estate to help you earn wealth in a short period of time. If you’re not planning to stay in the house for a long time, think of the other sources of income. If the property can help you create a steady flow of income, go for it.
Before you buy a property, check if it is in good physical shape. New constructions are always a better choice than the old properties. Keep the down payment ready, check with your lender and make sure verifying all the legal facts before you seal the deal. Also, think about your affordability. If you really want to see your investment bringing good returns, make sure you can afford all the payments comfortably. If you fail to pay, your property will end up being a liability which is not at all helpful.
Keep yourself away from bad investments. If a residential property in Bangalore fails to add value to your investment portfolio, don’t go for it. Check all the associated costs because listing price is not the only payment you are going to make. There are some additional costs and responsibilities you should prepare yourself to be ready for.
Real estate investment is always a good choice as long as it is a good investment. Choose a well-known real estate developer, check all the facts before closing and choose the residential property smartly. As long as you take calculated risks, the chances of success go up.