Investments involve not just investing money in any project, but making a profit. The basic principle of investing: money must work, that is, make new money. Investing them in real estate, you can earn in several ways, but first you need to understand the specifics of this type of investment.
Preparing for investment
Before investing in real estate, you need to carefully prepare:
Assess your financial resources as objectively as possible – whether your own funds will be enough or you will have to attract a co-investor. If you need a loan, you need to calculate the initial investment and their return on investment.
Analyse the real estate market. Not necessarily an expensive property will be a good asset – it may not become a source of stable income.
To attract professionals who will conduct an independent examination and give an opinion. Based on the conclusions of the experts, it will be possible to draw conclusions about the advisability of investments.
Find a lawyer specializing in just such transactions to check the documents before buying.
Be prepared for the fact that real estate investment is a long-term project that will pay off only in a few years.
Purpose of real estate investment
Investments in real estate are attractive because you can make a profit by developing a project in different directions – to receive passive income (from renting out an object) or earn on resales. It is worthwhile for yourself to determine which type of investment is suitable for your particular case.
To make it easier to decide, it is worth answering the question of what profit you expect as a result of the initial cash investment:
- A one-time profit when an investor invests for the purpose of resale;
- Passive income is an asset that makes a profit over the long term when real estate becomes a business.
In the first case, the object is purchased at the lowest price, and after a few years (or after the improvement of its properties) it is sold at a higher price.
The second strategy involves the purchase of real estate in order to profit from the rental of real estate.
Commercial real estate such as office space in Delhi is considered to be more profitable, so experienced investors prefer purchasing non-residential premises. There are a lot of options for commercial premises on the market: industrial buildings, retail spaces, garages/parking complexes, warehouses, etc.
Purchase of finished commercial premises for rent. It should be noted that the profitability of such a project largely depends on the general economic situation.
Self-isolation during the pandemic in the spring of 2020 showed this dependence well: many businesses left the market due to the inability to continue their activities and vacated rented premises. The payback period for renting is comparable to residential real estate.
Hourly renting of offices, coworking spaces, art spaces for events, etc. is gaining popularity. Many companies find it unprofitable to maintain an office on a permanent basis, especially with the transition to a remote work format. Therefore, many investors offer mini-offices for rent. The main thing is the availability of the necessary communications.
To get the best property as per your needs and requirements, we would like to suggest you to have a consultation with real estate agents in Gurgaon.