When it comes to investments, people in India are a bit reluctant. In the earlier times, people used to save money for the future or put their money in fixed deposit schemes or buy gold in terms of investments. But, now with low interest rates on FDs and other saving schemes, more people are looking for other investment options. As a first rule of investment, – ‘do not put all your eggs in single basket’- diversification of your investments is necessary. Real estate investment is one of the good options for investing your money in and flats for sale in Pune could actually be a good investment option. It has been giving good returns to its investors since long time.
Agriculture and farming have been primary occupation in India since long time. This has given rise to desire and pride on owning a piece of land. A farmer with ample land has good social status. Thus, the desire and flair for investing in land or real estate property seems to be natural in Indian population. In current scenario, both rural and urban population is seeking for real estate investments in hope of getting lucrative returns. This desire or wish will only be fulfilled when a person avoids following common mistakes while taking decision of investments in real estate sector.
- Not checking for Paperwork – while investing in any kind of real estate it is necessary to ask for various documents related to the property. People tend to trust the builder or the broker and sign documents without reading. This is the biggest mistake and can lead to serious consequences such as fraud or cheating and huge monetary loss. Do not shy away from asking explanation of the contract terms or any other things you have a doubt on. Taking help from expert is a wise decision in case a person does not understand much of the legal terms.
- Hasty decision – The seller is always in hurry but the buyer must keep his cool and take informed decisions. The property seller generally advertises with catchy lines such as ‘deal is open just for week’ or so to attract many investors. It is up to the investor to read and understand the entire deal and then decide. A decision taken in hurry can go wrong, as there is no or very little time to understand the deal.
- Not conducting surveys – Most of us do not have sufficient time to take survey of the investment options available. People tend to seize the first opportunity. Before investing, one must conduct survey based on few basic parameters such as cost, locality, builder’s status, future prospects, etc.
- Not considering hidden costs – a builder might provide with an estimated cost of the property but this is certainly not the actual cost. Many extra taxes or fees for registration might be added while making the actual payment. Investors might land in a big problem if they do not consider these costs.
- Expectations vs. Reality – Investments are made to get good returns in less time. With real estate investments, this might be partially true. Investor needs to be patient and wait for some time to harvest the benefits. Expectations should be based on the ground reality and as suggested earlier, putting all money in real estate should be avoided.