December 9, 2015
The most commonly asked question I heard from viewers on Magicbricks NOW is “Should I invest in property?” The problem with investing in real estate is that a lot of home buyers confuse buying a home to live in with making an investment.
The reason why you need to be able to differentiate between a home and an investment is because the criteria for choosing the property defers drastically for both purchases. Remember, a real estate investment should not only offer you good capital appreciation, it should also offer a good rental return.
When choosing a home to live in, you need to be mindful of the social infrastructure to begin with. The schools, colleges, malls, parks, markets and hospitals, so that your children and family have everything they need, close by.
Consider also, the distance of travel for yourself and your family members on a daily basis. How long will you and your spouse need to travel every day to go to work and how much time will the children have to spend in the school bus. What is the rush-hour traffic like? The other thing to consider is the safety and security of family members. Is the area safe after dark? Can your family travel at ease and comfort?
The next thing to consider is the availability of basic amenities like water supply, electricity, well-maintained roads and garbage management. Drive through the area and take a look at how well it is maintained. Also consider the upcoming development, and the ability of the area to handle the added pressure on its water, power and road infrastructure.