You could be looking at property investments to divert your funds and get better future returns, or looking at buying a residential property for an upgrade in your current lifestyle; real estate in India has always attracted a number of people due to its inviting prospects. One of the most important decision that is likely to determine what value your investment will fetch you in future is the location of project you choose to invest in. You could look at investing in the best residential projects by most reputed builders, however, if the location is not appropriate, nothing may seem right for you with the house. Location not only determines the appreciation of your property in the future but also decides a number of factors revolving around your day to day living.
Here are 12 factors that you should weigh before signing up with your home buying proposition. While all factors may not work for any project, try and get the maximum parameters in your favor to have the confidence in what you have invested.
- Geography: One of the most crucial factors that needs consideration while planning a home or property purchase is the geographic location of the property. Which part of the city you intend to buy a property in, is likely to have a direct impact on your lifestyle, particularly if you are looking at a long term investment horizon. It is an important decision which includes various other factors such as job opportunities, schools and education for kids, proximity to relatives, climatic conditions and so on.
- Budget & Affordability: Whatever may be your earnings, it is important to living a comfortable life within one’s means so as to have enough room for some savings. Hence, before deciding upon the property, it is important to do a careful price analysis of the probable locations that you would be looking to invest in.
- Neighborhood: Having likeminded people living around you is important for your social needs. Having a good neighborhood that is safe and with a culture that matches with your own, only helps you in settling down better in the new area. It is particularly important to look at a good neighborhood when you have kids who will be mingling around with other children residing in the area.
- Demand and Supply: The basic rule of economics applies very strongly as you make the home buying decision. Areas with extensive properties available for sale are likely to have lower property rates, and hence will be a good purchase decision today as the supply will come down eventually which will help you get better value from your investment. On the other hand, high demand property areas are likely to cost you more in the present day and when it comes to the resale time, the rate may have reached a stagnation point, which could affect the property appreciation rates
- Proximity to Basic amenities: There are several real estate websites and builders who talk of major amenities being just around the property to entice more buyers. However, as a smart buyer it is important to make an informed decision by studying the location yourself and analyzing the proximity of the location to schools, railway station, bus stops and so on. If the property is coming up then it is important to do research on how the area around the property is likely to develop in the coming years. Schools, healthcare facilities, markets and accessibility points should be your major consideration factors when deciding upon the location of the property you wish to buy.
- Future Appreciation: Real estate in India is a highly volatile market that is subject to dynamic changes in the coming future which can be hard to predict at any point in time. However, when you are deciding upon the location, you should be well aware of the expectations from the area in the coming future. Some areas are developed to an extent that they have reached a stagnation point due to which it is hard to expect much appreciation to come from the property in the future. However, some other areas may still be in the developing phase making your investment worthwhile and fetching better returns in the future. As an informed decision maker, you should be aware of what your current investment is likely to fetch you in the future.
- Infrastructural development: One of the major factors that should decide how worthy your property investment is, by assessing the infrastructural development that is likely to occur in the area you wish to invest in. Interior areas are less preferred by new property buyers as they are saturated with development prospects. However, investing in properties around prime roads and highways can always leave you with the benefits of better infrastructural development around your residential property. In cities like Bangalore, Mumbai, Hyderabad etc. where Metro rails are being developed, properties around the metro stations are likely to fetch more return for the investment compared to those having no accessibility to these at all. The development of infrastructure in the given locality with reference to schools, hospitals, malls etc is also likely to impact the price of property in the future.
- Crime Rate: While it may slip your mind, it is still an important factor to consider when buying a home. The location of your house should be in a crime free area or at least a place where there is a police station or a tough security system around. This is important because your family’s safety and security is one of the prime motives as one considers buying a house.
- Zone Regulations: If the property you wish to invest in comes under restricted zone area, it is likely to be a better buy, as the construction around the property will be limited. Since the construction is limited the spaces will be more open with more greenery around which is likely to take up the prices of the locality in the future. However, if the zone regulations apply to the construction of malls, healthcare facilities and so on, then you may have to reconsider your decision as living in such an area with no amenities around could be a challenge.
- Other Projects of the Builder in the Area: If a real estate developer has more than one project in a certain locality, it is a more trusted buy since the builder sees potential and will likely to take the effort to maintain the area for future developments. With more than one project in a certain location, the builder also has a better hold on the infrastructure he can make available in the new project as he has a better understanding of the area.
- Cost of Living in the Area: If you think of the future and invest in a premium property, you are likely to pay a heavy price for the higher cost of living in the area which would translate into expensive day to day offerings including vegetables, fruits, transportation, fees and so on. To think of the future at the cost of ruining your current financial savings is not a smart decision that an informed home buyer is likely to make.
The choice of location that you make today is likely to determine the returns you can expect in the future. Apart from investing your hard earned money with trusted developers it is also equally important to do your bit of homework and consider the above factors while making the property purchase decision. Here are some of the basic resources that you can bank upon to get maximum information on the above mentioned parameters.
- Speak to your developer: Premium residential properties that are developed by reputed builders like Indya Estates provide a realistic picture before the consumers so as to enable them to make the informed decision. Have a list of questions ready to ask the representative at the real estate office so that you have your doubts cleared before investing in the property.
- Internet: An internet search about the prospective property location is likely to give you a detailed analysis of various important factors revolving around the location in question. It is important to look up useful resources like real estate websites, property investment guides and news articles to get a complete and truthful picture about the location that you are considering your investment in.
- Newspapers & Marketing brochure: Written guides found in newspapers, real estate magazines, marketing collaterals provided by developers, emailers etc. are a great source of information that you can use as a base when deciding upon the property you’d like to invest in.
While having all the above factors in place may not be possible, it is important to scan through every aspect so as to ensure arriving at the best property buying decision. Home buying is a lifetime proposition and hence, giving it time and proper thinking is the best way to make the most of your investment.