Property investment is the most beneficial investment for an individual to get higher returns. There are multiple forms of investments, like stocks, mutual funds, or government bonds. Etc. The investment in stocks & mutual funds is highly volatile; thus, the prices may suddenly rise, and similarly, the prices may decline as well. Thus the investment in volatile markets is very risky. The investment in real estate is thus not very much volatile. Thus chances of prices crashing down are very rare and thus can be said as a safe investment. The only drawback of property investment is the high repairs & maintenance cost. The property prices always keep on rising steadily, and thus the investor can gain good returns on investments. Also, the property can be given on rent after the possession, and thus the flat buyer can gain out of the investment by getting monthly returns. The installments or the applicable EMI can be repaid through the rent gained from the tenant. The investor can later sell the property at a higher price to another buyer and gain good returns on the investments.

Various banks & NBFC’s provide loans to the borrowers; thus, due to the home loans market being fiercely competitive, the home loan applicant has a wide option available for availing loans. The banks are always keen on providing loans to flat buyers subject to the bank’s eligibility criteria. The banks provide loans up to 80% of the property value as loans subject to the applicant’s income. The loans can be taken up to the tenure of 30 years, depending upon the applicant’s age. The borrower can get an income tax rebate on the loans and thus save money on income tax payments on successfully availing of loans. The borrower can also negotiate the interest rates in case of a good credit score. The property investment is beneficial as the prices of the property keep on increasing steadily. The banks also have an option of pre-approved loans for home purchases that the customer should benefit from. The pre-approved loans are provided to only those customers who maintain a hefty bank balance in their bank account and also have a good credit score. The quality analysis of the customer is done, and accordingly, only the best customers are given the benefit or pre-approved loans for which the flat buyer can apply.

Following are the strategies based on which good returns can be gained on investments:

  • Invest in the right locality:

The flat buyer should study the locality and how better the area is developed or is developing wherever the customer is planning to invest. The developmental works like infrastructure projects, IT parks, good public transport & proper government facilities like water supply and electric supply are the various factors based on which the future growth of the property prices is dependent upon. Thus proper research about the prospects should be done before investing in the property to avail good returns.

  • Choose the right lender for the loans:

The flat buyer should choose such a lender who charges the competitive and lowest interest rates to the flat buyer. The lower interest rates can save money for the borrower in interest repayment. And thus, while re-selling the property, the owner can help gain higher returns on investments. Also, the borrower can become early debt-free in case of lower interest rates as the amount payable is low, and thus the number of installments can also get reduced.

  • Invest in a project built by a reputed developer or the ones with amenities:

The projects built by reputed developers have a good construction quality, and the projects with amenities fetch better value for the projects. Thus the investment in a posh project fetches better value than those that do not have any amenities.

  • Invest in localities that have better developmental scope:

The localities which have better-developing opportunities like commercial development, commercial IT parks, good infrastructure projects developing, proximity to schools & colleges. Etc has better prospects to grow. The property prices rise drastically in the localities which have better development in the vicinity.

Investment in the better-developing localities fetches better value to the property. Also, the buyer should ensure that the loans should be availed at the lowest possible interest rates to reduce the acquisition cost of the property. There is always a steady rise in property prices; thus, the investment is always beneficial in the investment in property rather than any other forms of investments.