Factors to be considered while investing in realty

Property investment is one of the most profitable and lucrative investment avenues in the present scenario. However, while investing in property, it is imperative that the right property is selected by employing the right investment acumen. Return on investment is an important factor that has to be considered while making a property investment. Hence, it is essential to be prudent while choosing the right property for investment from the available options.

Topmost priority for ideal location:

While there are many aspects that an investor/buyer should consider while making a property investment, the most important and crucial among these is regarding choosing the ideal location. In this respect, it is important not to make a choice based on the actual site of the property or its cost. On the contrary, it is important that a decision is taken based on the general state of the locality as well as the resale value of the property.

Proximity to major roads and travel facilities:

The next most important factor while making a property investment decision is with regards to the proximity of the property to major highways and roads. This will provide ease to travel facilities in the locality as well as the supply of essentials. In this regard it can be said that the ideal location for investing in residential property is in the center of a residential neighbourhood, which is slightly away from a major highway or main road where the traffic density is more.

Access to social infrastructure facilities:

It is also essential that the locality has access to basic social infrastructure in the vicinity. This includes facilities like reputed schools and colleges, good health care facilities/hospitals, grocery outlets, shopping centers, easy access to public transport, sufficient open spaces, entertainment facilities etc. It would be more appealing if there are other important facilities like companies, religious institutions, water bodies, parks, play grounds and other important infrastructure facilities.

Factors to be considered for commercial property investments:

With regards to investment in commercial property, there are other important factors that need to be considered. These include the proximity of the property to local business hubs as well as the type of business occupiers who are engaged in business activities there. The other factors that need to be considered are the availability of facilities that are essential to carry out business like telecommunications facilities, postal services, access to public transport etc.

Appreciation based on overall facilities:

It would be an added advantage if the commercial property is in the vicinity of a residential township. This would further enhance the value of the property due to the balanced growth of the realty market in the area. Appreciation in the value of the property can be expected in the immediate future based on the overall features that the locality offers. This will have a direct bearing on the value of the property, irrespective of its individual worth.

Evaluation of property market essential:

While investing in a property, it is imperative that the long-term profitability objectives of the investor are considered. It is essential not to indulge in speculative property investment, which could be harmful to the realty sector besides resulting in personal financial loses. Hence, it is imperative that the investor evaluates the property market carefully considering all relevant investment aspects before investing in the realty market.