Investing vs. End-use of property

Real estate investment has scaled up these days as it is considered a long-term solid asset! It will ensure a good ROI over the years. Many investors are not having a clear picture but it is good if you are reasonably certain of the utility of the purchase before buying a villa or a luxury flat in Kochi. 

Anyway, the factors for deciding an investment vs end use of property real estate are very different. The popular real estate portal for buying, selling or renting flats in Kerala, luxurykeralaflats.com shares an insight.

Location & Infrastructure

End-users: If you are planning to own a home for shifting into it sooner or later, location has a major role! Ensure that the locality is conveniently situated and caters to all your needs like access to facilities - schools, hospitals and malls. Connectivity is also important as is the neighbourhood too. Factors like infrastructure development and major residential projects in the pipeline also count to the livability index of the locality.

Investors: Location is important for investors too! Decision to be taken only after a thorough research of the location is done. Newly emerging localities on the fringes of the city or suburbs may help you earn a healthy return on investment (ROI). Even though such localities might not have all social and physical facilities in place they may offer lower entry prices. There is a better scope of price appreciation in the long run. 

Construction Status

End-users: The construction stage of the flat in Kerala you are planning to buy is very crucial. It determines your monthly outflow of EMIs, if you are planning to buy on a home loan. If you are living in a rented flat, it's better to invest in a ready-to-move-in flat in Kerala or one that is nearing possession. You would not have to handle the double burden of EMIs and rent. However, buying closer to possession means you have to pay a higher value than at launch.

Investors: A pre-launch or launch stage is good to invest economically. You pay less but it leads to a higher risk as there is no surety of timely delivery. You may exit halfway through or after possession of the flat. Or   you may consider investing when the property is partially ready. Here the initial capital would be higher, but you may be able to lease out the property within a year or so and earn rental returns.

Type of property

End-users: Buy property as per your family needs, be it a plot, house, villa or a luxury flat in Kochi.

Investors: If you are an investor and wish to earn good returns on your invested amount, be sure to buy a property type and configuration that is in demand. In metro cities 2BHK and 3BHK flats are in demand, while in smaller cities, individual houses are preferred more by the buyers.

Interacting with property consultants like luxurykeralaflats.com or doing some exhaustive research online may benefit you. Contact us to know more.