From capital appreciation to rental income, things to consider before buying residential property

India's residential sector has emerged as an attractive investment opportunity not just for the people dealing in the real estate sector but also for many residents to earn their passive rental income. This continues despite the rise in interest rates on home loans as there is a constant demand for rental properties across cities - simply because of the growing urban workforce.

In fact, many people prefer renting due to mobility for work or to experience living in various neighbourhoods before committing to buying a property. It's crucial to make an informed decision based on thorough research and analysis before proceeding to buy a house. 

Here are some tips to consider before buying residential property in India:

Capital appreciation: A real estate property benefits the consumers through long-term capital appreciation, leading to substantial returns on investment. According to LC Mittal, Director, Motia Group, picking appropriate residential properties is vital for achieving success as the housing sector has displayed promised growth in the last few years.

Rental income: Rental income provides a steady cash flow. "Analysing the intended rental market plus its preferences may also assist investors with finding properties which will draw in renters and provide consistent rental revenue," Mittal added.

Hedging: Real estate can act as a hedge against inflation since property prices tend to appreciate over time, moreover, your rental income is also expected to increase over time. 

Ease of Financing: Suren Goyal, partner, RPS Group, said that emerging trends such as crowdfunding investments as well as peer-to-peer lending platforms, on the other hand, offer alternative financing choices. "Such platforms make use of technology to bring together lenders with potential borrowers, resulting in diversity and maybe greater returns." Banks and financial institutions are offering housing loans at competitive interest rates which makes it easier for individuals to buy property. 

Property Type: Decide on the type of property that suits your investment goals. Residential real estate investments may survive in today's ever-changing market by picking the correct property, investigating current financing alternatives and properly managing investment. To remain relevant and attract excellent renters, it is critical to successfully promote projects using technological advances.