Things you should Know before Buying Your First Investment Property

Investing in real estate brings fortune for many people but still there are risks associated with it like every other business. So, It is very necessary to make a proper financial planning before investing in a property. There are several factors that a buyer must consider before buying a property. He should try to maximise the benefits while purchasing a property which may vary from project to project.
Here are some tips that can help buyers before investing in a property
Buying a property is a not an easy task so one should have a planned strategy. Different instruments like SIP, mutual funds or stock trading make one’s investment contribution. Only a good credit score will help you to get eligible for a loan.
You need to do proper research before buying a property. Check the rentals and at least last 3 years rate appreciation also before investing your money. Look for the social infrastructure of the location and future infrastructure development plan. When you purchase first property, it requires good research and valuation which can give you good returns.
There are various types of loans that can be availed for buying a property. Everyone is aware about normal home loans that are offered by various banks. When you take a ‘Home Loan’ there is an option where the buyer start their EMI immediately which will save you from the pre-EMI interest. There is an other option called ‘Loan against property’ where the buyer can avail loan at attractive rate of interest. ‘Top up loan’ is one more option which gives the buyer an option to avail extra ‘home loan’ against the present loan.
While buying a property, you can avoid the loss of tax breaks. One of the safe options is to buy a property with the occupation certificate. There are also many developers who are offering no GST schemes these days which help in saving taxes. There are many package deals which will also help the buyer in saving taxes. If you are a salaried person then you can avail loan and save up to Rs. 2 lakh on the interest paid
A buyer must always focus on the payment terms, GST offset and higher down payment while buying a property. The size of property is also an important factor. There are many affordable housing options available in the market which is definitely a good thing for the people having limited budget.