Special Points for the Buyer who has Resale in Mind

real estate resale
June 18, 2019

Special Points for the Buyer who has Resale in Mind

One of the best ways of making the big bucks is by investing in real estate – as history has repeatedly shown this sector to be the most stable amongst the various forms of investments. Buying a home for the sole purpose of investment still means that you need to buy the home as if you are going to use it for yourself. Only this way will you be able to make a good choice of a property that will increase your wealth and make the property more resalable.

The first factor of course has to be the location. The house needs to be located in a good neighborhood, where it’s safe for kids to walk unescorted. No one wants to buy a home in an insecure area. The neighborhood should also be devoid of potential sources of noise pollution, waste dumpsites or nearby smoke-emitting industries.

The locality should also include access to basic facilities to a nearby hospital, pharmacies, grocery shops, malls, cinema-halls, schools, etc. It should also be located in a place where you can easily access areas with numerous job opportunities. People want to live in places where they can have easy access to jobs as well as schools.

The property should also be situated in an area that’s still in its growing phase, such that with upcoming infrastructure and facilities, the cost of your investment will increase in its value over time. This is called capital growth, making buying at the right price critical. If you buy a relatively expensive property, you will have to wait that much longer to derive substantial benefits from it. However, do remember not to sell the property for the first three years at least as it’s considered short-term capital gains and can be taxed.

Before buying property for resale purposes, do make sure that you have enough liquid funds to carry on; you should have a steady income plus a nest egg tucked away for emergencies. A situation shouldn’t arise whereby you have to offload the property before its values have gone up sufficiently for you to make a killing on it.

Investment in property is a long-term scenario and you shouldn’t expect substantial gains within the first few years itself. In fact the longer you hold it, the more equity you build on it. And in the interim period, you can always rent it out and pay your loan EMIs with that. Gains all around!