Choose the right property
To increase the capital growth of your investmentsyou need to wisely explore and choose a property that is likely to increase in value in the near future. The kind of decision you make on choosing the property at the right time is absolutely critical.
Explore and do extensive research on the properties that are on sale in the market. Keep a keen eye on the rate at which the properties are being sold in and around the area and soon you’ll become a pro and will be able to gauge and work out the worth of a property.
There are flats for rent in patna, its urban agglomeration is the 18th largest in India, with over 2 million people.
Never consider investing in a property in the area you are unfamiliar with. The chances of you getting coned by real estate punters are very high. You might end up paying really high commissions resulting in the cost of the overall property being hugely inflated.
Payattention to the demographics for convenience of renters
If the property you choose to invest in is near educational universities, the no of rooms will be in greater demand than a playground or open space for car parking. It is advisable to choose a property which is close to a school and houses most amenities in the nearby area. Renters with families are more likely to approach your property. Do not invest in properties on busy roads or close to street markets.
Before investing in a property do your homework well and explore information on the varied types of contracts that exist in the market before investing your all time savings in a real estate transaction.
Understand how the contracts work? Below are some of the basic contracts that are usually seen in real estate.
- Lease Contracts
A lease contract is a type of agreement that happens between a lessee and an individual who is going to stay on rent in the house. The property is put on lease by landlords to earn extra income. The lease agreement is the document in which the landlord specifies the deal (monthly rental) that is agreed to be paid by the occupant. Other details mentioned in the lease agreement are the money paid as security deposit and any other terms and condition laid by the landlord.
- Power Of Attorney
Power Of Attorney is an agreement that is signed by you to a close associate or a relative of your choice to act in your absence. The power of attorney is a deed which comes handy when you are ill on a business trip across the country. You will in no way loose the ownership of the property when you assign the power of attorney, you will just give complete control of your transactions to a person of choice named in the document.
- Purchase Agreements
Purchase Agreements are the ones which real estate agents deal with the most. It is a document of agreement prepared when a buyer/seller comes to an understanding, and freeze on a particular price to sell the property to the potential buyer or the other party. This contract has all the details of the buyer and seller, the price that was agreed upon and the closing date of the deal.
- Contract Deed
A Contract Deed is the agreement document that is the riskiest of all. This contract is prepared when you opt to take a loan from a money lender, and take a loan against your existing property, by offering the original documents as security deposit. This contract gives the money lender an edge over you and as a loaner allows complete advantage. The contract cannot be transferred back to your name, if in case you fail to pay the entire money to the loaner with the interest. This document is termed to be the riskiest because in the act of defaulting on any payments, this contract allows the lender complete liability to bar your house and walk away with the documents and further resell the house to get the money with interest or be a proud owner of a new property.
These are the basic contracts that you are most used likely to come in contact with as a new investor in real estate market.This information just accounts to just a basic knowledge of the real estate market. Ideally, it is wise to hire an agent to represent you.