Key Factors To Evaluate Before Investing In Any 2 BHK Flats In Thane

Key Factors To Evaluate Before Investing In Any 2 BHK Flats In Thane

As the real estate market has been booming over time even with the pandemic affecting all other sectors of the Indian economy, investing in a residential property is a smart step to secure yourself financially. If you do proper research and follow the steps properly as expected, you will be entitled to strong returns on your investment in the form of a decent passive income, equity gains, & tax breaks.

A huge return on your investment cannot be guaranteed but you can plan tactically right from the first step of the process like choosing the perfect property for investment to get the best results. You must work on understanding the market trends along with thoroughly overlooking the common guidelines which decide how greatly successful your investment will be. The process can be engulfed whether investing in 2 BHK flats in Thane is a first-time experience for you or not. With all that you must take into consideration & everything that is at stake when making this decision, the experience can be daunting, especially if you are new to the investment world. Irrespective of what kind of property you are planning to invest in, you must start with a firm understanding of the fundamentals that make your decision a good one. To help you get in that position, here are a few points that you must assess and then make a purchase for maximum surety:

Type of property

There are chiefly four kinds of real estate properties – residential, retail, commercial, & industrial but residential real estate offers the most security. With residential properties like 2 BHK flats in Thane, there comes a threshold rate of return which is guaranteed. A shelter is one of the basic requirements for survival and people are going to look for a house to stay in. Thus, you will always find buyers or tenants for your house. The profit margin in residential properties is less as compared to the other three property types but the risk is also lower. There is a huge risk of inability to get rental payments or vacancy in commercial, retail, and industrial properties, especially during an economic crisis. So you must first identify what kind of risks you can bear and then decide what kind of property you want to invest in.

1. Personal income

Investing in 2 BHK flats in Thane is more of a monetary commitment and it can take more than give from you, in the initial steps. You must ensure a stable income that is capable of supporting you during hard times if any. There is a financial thumb rule which helps you to check if you have spare cash to function smoothly in your current situation. To be on the safer side, financially plan the next six to ten months of your life in advance to verify if your stable income will be enough. If you are positive then you can go ahead to make a real estate investment.

2. Developer

The real estate market has been extremely competitive with different residential property choices in each corner of every city. There literally is a flock of real estate developers/builders making great efforts to grab a position in such an aggressive environment. There are new as well as well-experienced builders offering 2 BHK flats in Thane but you must verify the caliber & authenticity of your prospective choice. This is one of the most important factors that will affect your investment decision.

3. Location

Another key aspect to evaluate when choosing a property for purchase is its location. When choosing the location, make sure that you assess the degree of development in that area for the short term & long term. Be thorough when reviewing the ownership of immediate properties close to where you are investing. One way to do this is by seeking details from the public entities that are in charge of your preferred location. They may also have the details of long-term future planning of the area so that you can predict how correct of a choice you are making.

4. The 1% rule

The 1% rule is a standard way amongst investors to measure if your investment is a good one or not. The rule quotes that investment is worth only if its rate of return every month is at least 1% of the price that you have bought it for. The price includes the base amount of one of your 2 BHK flats in Thane along with any additional expenses that you have spent on it like repairs.

Although this is a deciding factor, you may skip it if you are focusing on long-term returns over monthly returns. But make sure that your monthly EMI is only less than 1% of your investment so that you don’t end up spending more than gaining.

5. Appropriate mortgage conditions

Home loans may seem convenient but they carry big expenses with them. When opting for a loan, you must be aware of the fact that you are committing your future here. Thoroughly understand how loans operate and avoid getting into larger debts situations, also known as “over-leverage”.

Even the top experts in the real estate field can fail to get away from the temptation that comes with over-leveraging.

6. Characteristics of the house

The condition of 2 BHK flats in Thane that you are investing in is a significant factor or consideration. Appealing houses or plots of land come with good-looking pavements, an ideal layout, balconies, and nice architectural features. This is to beautify the property as a property’s characteristics can either attract or repel tenants. Aesthetically pleasing features will get you better returns in terms of rent as well as price appreciation at the time of resale.

An investment in the real estate market can be specifically lucrative, as history shows many of the big personalities have made a fortune in the same way. The above factors are just a kick start for you which you shouldn’t miss if you wish to become a successful real estate investor too. The above-mentioned elements can make a difference in your returns from a few thousand to billions which conveys how significant they are.