Afternoon D & C Dedicated To Mumbai
Home > Property > How to Profit from Residential Property Investment

How to Profit from Residential Property Investment

Saturday, September 15, 2018

By Kishor Pate, CMD – Amit Enterprises Housing Ltd.

Real estate has historically been acknowledged as a potentially lucrative investment asset class, which is why it continues to draw attention all across the globe. In India, the real estate sector is also the second-largest employer and is estimated to grow by 30% in volume and scope over the coming decade.

All of this sounds good if you are a real estate investor or planning to become a part of the industry. But making money out of real estate can still be tricky territory. It is worth investing your time into understanding the market and the factors that can help make residential property investment profitable for you.

To start off, let's not go too deep into how property investors across the globe have been able to make millions, but stick to exploring the opportunities in residential property investment in India that lie in front of you.

The most common and popular source of residential real estate investment profit in India comes from appreciation. To put it simply, appreciation is the increase in the value of the residential property you own. Residential property for investment appreciates according to its location. In India, cities like Mumbai, Pune and Bangalore have been garnering the most satisfactory returns on residential investment. This has been time and again been confirmed by various leading real estate research firms as well as experienced real estate investors.

However, it is not the cities as a whole that you should consider, but their growth corridors. Residential property values appreciate in good neighborhoods which are complemented by easy transit routes, public transport nodes, shopping centres, schools, hospitals, parks and other public spaces, and more. The more the number of amenities a location offers, the greater is the incremental growth in residential real estate values.

For this reason, Mumbai's most lucrative residential property investment hotbeds have been areas like Wadala, Chembur, Andheri, Mulund, Kanjurmarg and Ghodbunder Road in Thane. These are not necessarily the most expensive areas in Mumbai, but they offer property buyers the advantages of good properties by reputed builders, excellent connectivity with various important parts of the city and decent social infrastructure.

The scope for rental income must always be considered while making a residential property investment, even if the primary objective is capital appreciation. Many people purchase their investment properties with bank loans, and rental income helps pay for some of the monthly EMI outgoings. Another benefit of putting an investment residential property out on rent is that the property remains in use, and this ensures that the fittings, fixtures and plumbing are regularly maintained. This is an important factor when the time comes around to sell the property.

Every growing location needs time to come into its own and become a full-fledged flourishing market. In the process of getting upgraded, it also draws increasing demand from homebuyers. Meanwhile, every property market goes through its ups and downs - it is very rare to see sustained growth in any location, and there will be 'low' periods and sometimes even periodic de-growth. This is why in India, the ideal 'investment horizon' - or the period of time for which one should remain invested in a property - is between 4-5 years or longer if possible.

In this time, considerable growth in a property's value is more or less assured regardless of market fluctuations. For the patient investor who has chosen his or her property after enough market research, turning a profit is never an issue. This is why in India, residential property remains such a popular route to growing one's wealth while simultaneously attaining financial stability and security.

COMMENTS
No Comments Posted
POST YOUR COMMENTS
Name:  
 
Email:    
Comments:
 
 
Is it safe to have intercourse during the menses?
Dr. Rajan B. Bhonsle, M.D. (Bom)
Consulting Sex Therapist & Counsellor
Dr. (Mrs.) Minnu R. Bhonsle, Ph.D.
Consulting Psychotherapist & Counsellor
Astrology
Select Sun sign:
 
Aries (Mar 21 - Apr 20)
Aries (Mar 21 - Apr 20)Ganesha anticipates some exciting times for you. You are likely to meet some people today who will prove to be assets in the future. You apply yourself to perfection in work, and in your thinking. Towards that end, says Ganesha, you will have to remain practical.
- Advertising -
The appalling air quality in Mumbai doesn't deter
The skin is a sensitive organ and reacts to weath
Fyre™ Energy Booster, with herbal ingredients, pr
Read More