Planning to invest in real estate? Experts decode ways for beginners to make their first investment

Livemint spoke to industry experts regarding how beginners can make their first investment.

According to Ankit Kansal, Founder, of 360 Realtors one should do some rigorous homework before pouring in the capital. It is important to check the reputation of the developer. Likewise, the location is also very important. One should opt for locations with strong future demand potential. 

Locations backed by infrastructure development and a healthy job market should always be preferred, summed up Ankit.

As per Ashwinder R Singh, CEO of residential Bhartiya Urban, with new working models especially better-designed in the IT sectors, the need for a better designed home, with access world-class to world class amenities has spiked up. They don’t mind investing in a property even in the peripheral areas of the city, especially  with a concept of integrated township, that offers a larger better designed space at a similar price vis-à-vis properties in the city center.

“The rental returns are also on the upward trend and the micro-market which is under development and not fully mature, secures the capital appreciation as well with time, making real estate as an asset class a lucrative investment option,” said Ashwinder R Singh.

Sanya Aeren, Chief Advisor, Marketing & Communication of Berkshire Hathaway HomeServices Orenda India said for beginners, I would suggest startinga  with a small amount. Even though small is subjective, they must start with whatever small amount means to them. Investing small amounts over certain periods will only add to their experience and they will have their share of people who they can trust, and knowledge which will help them make good analysis and choices in future.

“There are several factors that affect one’s choice of investment depending on how much they want to invest, what ROI do they expect, in which asset class do they want to invest, for how much time etc,” said Sanya Aeren.

For a home, the factors can be varying like location, connectivity, proximity to their workplace, safety, neighbourhood, kids friendly community etc.

Depending on one’s investment goals, a prudent analysis and consultancy advice can be of great assistance, he added.

Sachin Gawri, Founder & CEO, Rise Infraventures Limited said it is essential to make wise decisions and invest your hard-earned money smartly. One must plan which region hosts the most efficient projects in budget and ensure significant returns over time. Try to compare projects from different developers, and then choose the one that is worth the investment. 

“Choose a project that is well-connected to transport services and can be conveniently accessed. Also, it is beneficial to choose projects that are in close proximity to essential amenities so that, if not for personal use, they can be utilised as a passive source of income,” said Sachin Gawri.

For any industry, the knowledge of the market is an evolving process. One must have clarity on land laws, cognizance of one’s rights, common market practices etc. Real Estate is a complex economic hemisphere, and every state has its laws and administrative bodies.