5 Tips For Your Peace of Mind When Investing In Real Estate

There is no one standard rule when it comes to making money by investing in real estate. But, keep a few things in mind to ensure that your do not waver while your money is locked in a property.

Here are some tips to avoid real estate investing hacks for those investing in property in India:

1.Do not bet against the odds

There might be a lot of hoopla and advertising created by builders for a location which is yet to take off. Check it well and ensure that there is at least a hope of the area becoming an attractive destination in the future. If there is no announcement by the government, do not go by hearsay that the area’s land rates might pick up. There should be at least one hook that will make sure that real estate investment in an area might pick up. No assurance, no investment.

2.Do not panic

If you have invested in a property and you hear a rumor against the location, wait to verify whether it is true or a dud. In such cases, do not panic and exit the investment immediately. If you had a real glimmer of hope while you were investing, it will still hold. A panic sale might leave you at an immediate loss and a debt with no property in hand. Wait and watch the trend for a few months at least before you take a decision. If it is just gossip, it will die down. Remember that land prices do not change for every statement made by a government executive. Such statements take years to become laws and regulations.  

3.Stay on for the long-term

Even if the area in which you have bought a property has developed, do not go ahead and sell it immediately. If your investment has appreciated well in the first two years, then it has the potential to go up even further. Do not be in a hurry to exit and make money. Real estate prices do not have very quick or deep crests and troughs. Go in for at least five or even 10 years. Once the property matures, you can make more money than you thought was possible initially.

4.Try again after you fail

Do not quit on real estate even if you fail once. If you have invested young and unless you have taken a huge hit, invest again if you find a good property. Real estate in India is a sector that has delivered its promise to most people. Use the wisdom from your earlier investments and avoid making the same mistakes. Bring in partners to reduce risks for the second time. Make a smaller bet, but keep investing.

5. Go for multiple properties

If you are taking risks on a new location and can afford it, take more than one bet. It will spread your risks and make sure that the properties you invest in do not depend on the same project or in the same vicinity. Spread your risks geographically as well. If possible, go for different cities to make sure that untoward incidents in a state do not affect the land value of all your properties.

Katya Bellamkonda is a Mumbai-based writer. She has spent the last nine years reporting on many sectors in India including energy, infrastructure, technology and telecom.