Real Estate Investment Advice is Crucial Before Investing
Fluctuating property values, changing interest rates, High Inflation, various types of properties (residential, commercial, industrial) each have their own dynamics.
Real estate investments often involve substantial financial commitments impacting overall financial portfolio – including tax implications, potential returns, and risks.
Real estate transactions involve legal contracts and regulations. Legal experts will ensure compliances with local laws and regulations.
Real estate markets are highly localized. Local real estate experts have in-depth knowledge about the specific market conditions, trends, and potential areas for growth or decline.
Depending on financial goals, various real estate investment strategies such as Residential properties for rental yield, Commercial Real Estate on Lease Guarantee, Rental income from Holiday Homes of Tourism & Hospitality Industry, Investment in Prime Lands etc.
Consulting with experts can help to identify red flags and avoid fraudulent schemes that could lead to significant financial losses.
Factors causing failures of a Real Estate Project
- Lack of ability to raise funds to finish projects
- Lack of ability to sell Units thus resulted lack of funds and project gets delayed
- Diversion of funds to other projects
- Launched projects without requisite statutory approvals, Licenses and RERA Certification
- Builder/Developers are over leveraged
- Lack of skills to execute projects
- Launched projects with serious flaws
Factors Causing Failures in Real Estate Investment by Buyers
- Failing to make an investment plan
- Skimping on research & due diligence
- Over dependence on Real Estate Agent
- Overpaying for the property
- Underestimating Expenses and lack of knowledge of hidden charges
- Overestimating Returns from Investment
- Lack of Advisors in the market to guide
Essential information on Builder/Developer’s Profile
- Builder’s Credentials, Financials and funding sources for upcoming properties.
- Capital Appreciation History of the Builder’s Past Projects.
- Review of Litigation, Legal Disputes, and Impending Court Orders.
- Review of Builder-Buyer Agreements, Application Forms, Lease & Rental Agreements and Deeds.
- Status of Statutory Approvals, Licenses, and RERA Registration.
- Location, Connectivity, Infrastructure Development, and Future Growth Prospects.
Financial & Budgetary Solutions
- Buying an entire property is costly for individual.
- Investors Buy & Sell Affordable Property Shares.
- Better Liquidity Options: Easier & Faster Liquidation.
- Outsourced, Operating cost burden on Investor is Negligible.
- Guaranteed Rental Income: Monthly Income Through Lease Guarantee.
- Capital Appreciation: Expected Short-term & Long-term Value Increase.
- Long Term Rental Income from Revenue Sharing Model.
Risks associated with depending solely on local Real Estate Agents
Local real estate agents typically have a limited inventory of properties, and they promote projects from specific builders or developers. This limitation prevent investors from exploring a wide range of options, potentially leading to a less diversified investment portfolio.
Real estate agents earn commissions based on sales. While many agents are professional and ethical, there are instances their focus on earning commissions might lead to pushing buyers into properties that may not be the best fit for their needs or financial goals.
Real estate agents might not always have comprehensive financial advice. They may not consider overall financial portfolio, long-term investment goals, or potential risks associated with the property, which could result in a mismatch between the investment and financial objectives.
Once the sale is completed, some real estate agents may not offer adequate after-sales support. This lack of ongoing assistance can be problematic, especially if issues arise with the property or if required further guidance related to investment.
Real estate agents may not take responsibility for investment decisions gone wrong. Investors bear the financial consequences of their decisions, and agents might not be legally or ethically obligated to compensate for poor investment choices.
Local agents are typically well-versed in their specific market but might lack broader insights into regional or national real estate trends. This limitation could result in missed opportunities or investments in areas with less growth potential.