If you are planning to buy a property, you should know a few important facts. Purchasing a commercial or residential property is advisable only if you have a plan to live or do business there for a long time. Otherwise, it can prove to be a costly investment. Purchasing a home and later selling it for higher price requires real estate knowledge. So, once you are pretty accustomed to the ups and downs of the market, proceed to the investment part.
In case you are looking to buy a home, please consider the following points.
• Finalise the amount of money you want to spend on real estate. There is a rule of thumb to determine this. It should be two and a half times of your annual salary. There are better tools available online to calculate this better. These tools will take income, loans and expenses into consideration and then tell you the exact amount.
• You should also know the best negotiation techniques so you can get the best deal while purchasing real estate. The deal depends a lot on the prices of similar properties in the same area. For example, before buying a commercial property in Noida, you should compare it against rates in Noida and not in Mumbai.
• You should make good use of internet as well. Internet will give you the listings of all the real estate’s with their current prices. However, a professional real estate consulting agency can help you a lot in this regard. He can help you in the bidding process for the best deal in real estate.
Home loans can also help you in saving money. The advantage with home loans is that you get a lump sum to invest in the property while paying that back using easy instalments. Hone loans also give us huge tax concessions.
• You are entitled to get tax deduction on the amount you have borrowed from the bank for purchasing a house.
• You will also get an “income from property” benefit on the interests you pay and it is deductible from tax.
• Even when you take a new loan to repay the old loan comes with the above benefits.
This is how you should plan to proceed when you are willing to invest in real estate. Remember, real estate investment is a good amount of investment and you should practice utmost caution while negotiating this.