The recent boost in the Indian real estate market has resulted in greater investments, both commercial and retail. Primarily, you can invest in real estate using two options
- Home Loan: You can secure a home loan in India to buy a property, based on your home loan eligibility.
- Real Estate Investment Trusts (REITs): You can source REITs to invest in the best real estate companyin India. Get assured returns on your investment thanks to REITs compulsory dividend distribution policy.
Nonetheless, you must perform due diligence before closing the deal.Use the following tips to make the most of your real estate investment.
Type of Property
A commercial property yields more rental income than a residential property. Based on your investment purpose – rental income, diversifying the portfolio, or capital appreciation – you can decide the type of property you want to buy.
Besides, lenders assess your property before approving your home loanapplication. For a valued property, you can score lower home loan interest rates and better loan terms.
Investing for rentals? Look for emerging neighbourhoods to score higher ROIs. You can earn better rental income and capital appreciation over time.Moreover, lenders usually offer a higher home loan amount for valued properties in primelocations.
Buy RERA Approved Projects
Buy a RERA approved project to safeguard your investment. Under the RERA norms, builders are liable tofollow strict marketing rules and deliver the projects on time. All transactions are transparent, devoid of any foul play.Moreover, you can easily avail of a home loan in India for a RERA approved project.
Go For Reputed Builders
A reputable builder is RERA approved, offers best amenities, and delivers projects on time.Invest in some of India’s real estate top companies like Oberoi Realty Ltd, DLF Ltd, Phoenix Mills Ltd, and more – to score lower home loan interest rates and better loan terms
GST and Tax Liabilities
As per the current GST regime, a single rate of 12% is levied on properties under-construction.And no GST is applicable on completed or ready-to-move properties, provided the completion certificate has been issued.
In recent policy rate cuts, GST for under construction properties was dropped to 5% for premium housing projects and 1% for affordable housing projects.However, no tax benefits are available on the home loan interest rates or principal repayment.
Research the Market
Know the market before you dive in. After all, real estate investment isn’t a small sum of money. Learn about the current trends, home loan interest rates, prime locations, real estate top companies, and more – for better financial planning and favourable ROIs.
Investing in real estate can be highly beneficial.You can rent the property and use the monthly income torepayyourhouse loan EMI. Or take advantage of your property’s capital appreciation and sell it when the market issurging up.
Procure easy funds for your real estate investment from any financial institution.