Things To Consider Before Investing In Real Estate

Real estate investment is something that needs intense planning for long term benefits. In view of the steep rise in property prices, the battle to secure a space of your own is getting highly competitive. However, with a dose of intelligent guidance along with smart planning and research, a decent real estate investment is fairly within reach. Gharonda Builders &Developers suggests some questions a first-time investor should ask himself before investing in real estate. 

·         Purpose

First things first, determine the purpose of buying a property, whether it is intended for personal use or wealth creation. Undoubtedly, real estate investment is a major avenue of creating wealth, if done sensibly and with discipline. Once you invest your money in a property, note that you won’t be getting back the entire investment back in cash. You will never have access to the entire purchase amount with the earned profits in your bank account. You will have to reinvest it somewhere else to save taxes and this nasty chain will always continue.

·         Clean credit history

Since you are likely to get a mortgage for buying a house or any other property for that matter, you must ensure that your credit history is as clean as possible. To assure this, get a CIBIL score check score done. Procure copies of your credit report a few months before you start searching for a house. Make sure the facts are accurate, and fix any issues that you discover.

·         Are you EMI ready?

As per Gharonda Builders Reviews, if you plan to buy a basic 2BHK in a developed locality with basic amenities, it will easily cost you around Rs.35-40 Lakhs. And if you opt for EMI, the monthly EMIs at the present rate of around 12% for 10 years will cost you Rs. 62k per month. Are you ready to spend that huge chunk of your monthly earnings for EMIs? It is important to analyze this factor and get a reality check done.