Wealth Guide: Planning to invest Real Estate? Expert decodes what all you need to understand

Wealth Guide: Real Estate Investment - A good investment has the potential to transform our lives by providing us with sufficient funds to pursue our dreams. Most of us now have an investment portfolio that includes a variety of investments, such as stocks, gold, bonds, government schemes, and so on, but one of the most undervalued or overlooked investments in recent times has been real estate. The average income in most Indian cities has increased as a result of the massive economic boom, providing us with additional incentives to invest for the future, and real estate may be the ideal investment choice for you. Subhash Goel, MD, Goel Ganga Developments decodes what all you need to understand if you are planning to invest in Real Estate.

Real Estate Investment

"The act of purchasing, renting, managing, and/or selling real estate for profit is known as real estate investment. As a real estate investor, you deal with assets such as residential home estates, commercial spaces, industrial real estate, and even land. Given that prime real estate never loses demand or value, investing in it can be a wise decision, with returns far exceeding those of traditional investment options. Everyone's dream is to own a home, and realising that dream can provide both emotional and financial fulfilment. Someone with no prior real estate experience may be swayed by the allure of profits and invest in real estate that provides no returns. When it comes to real estate investing, there are a few things you should keep in mind to reduce risk and ensure success," Subhash Goel explained.

Property Research

"The client you target will have a direct impact on the return on your investment, which is why thorough research is required before purchasing your first property. With multiple projects on the horizon, it can be challenging to select the right real estate. You must be knowledgeable about real estate investment. The standardisation, the history of the construction company, the materials used, and the area in which a property is located can all influence the returns on your investment," Goel added.

Checking Your Finances

"It is critical to calculate your finances in order to ensure that you meet certain goals. While it is simple to obtain bank loans, calculating the interest and other factors is critical. If you want to start investing in real estate but don't have enough money to get started, you might want to look into investment loans. This loan is only available for commercial or residential properties that are not used by the investor," he explained.

Real Estate Market Analysis

"This is the most important aspect of real estate investment for beginners. Analyzing the market is essential before purchasing a property because it helps investors find the best properties with high value and profitability. Researching market rates and analysing developments can assist you in tracking local trends and extrapolating future returns," he opined.

Property Investment Diversification

"An investor should consider diversifying their investment portfolio to reduce the risk of loss. The volatility of a risk is reduced when it is reduced through the process of diversification. This means that an investment portfolio with lower volatility will be much more stable than one with higher volatility," he decoded.

Risk Factor

"Real estate investments are comparatively safer than other types of investments, but they are not without risk. Legal stumbling blocks and property disputes are extremely common in India, so buyers should make certain that the property they are interested in is free of complications. However, this should not deter anyone from pursuing fortune growth through property investment. Investors can be confident that the risk they took was not in vain if they have proper knowledge, market analysis, and secure investments," he concluded.