ABCs Of A Real Estate Investment

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Before we begin to unpack some tips on real estate investing, we will try and make this fruitful for you - as in worth your time. 

You think a real estate investment is bad in India - Correct. This blurb is not for you. Scroll on. 🍪

You think a real estate investment is worth trying or the idea requires further exploration - Correct Again. Come right in. 

Thumb Rule For Beginners

When first entering the real estate investment market, start small. 

Tell yourself this every time you are faced with a 'lifetime investment opportunity' brochure - Real estate is expensive, so I have to be sure it’s something I'm comfortable doing. 

What's Your Poison?

Narrow down on the type of investment you want to make and prepare accordingly. Are you buying to fix and sell quickly for profit, rent, or hold?

Buying To Fix And Sell Quickly For Profit - If you’re looking to flip (flipping houses, like omelettes, is about buying an older property, refurbishing it and selling it asap for a profit), start small because expenses add up quickly. Stick to revamping features that add value, not expenses for the new buyer. 

Returns on Flipping - Generally decent but market and location linked. 

Buying To Rent - If your goal is to buy and rent out, be prepared to manage the property. Being a landlord and having tenants is very different from flipping and selling; you must be prepared to deal with issues such as rental market changes, repairs, breakdowns, and crappy tenants.

Returns on Renting - Average. 

Buying To Hold - If you plan to buy a secondary home to hold now and sell later, do a thorough due diligence, especially on the location and the kind of people in the community. Bad neighbours can quickly make your investment, un-cashable. 

Returns on Holding - Generally high.