Real estate investment is one of the best ways to build a long-term, consistent income stream and generate wealth. Are you a beginner looking to start your investing journey in a real estate company? Then you are in the right place. This blog will guide you and provide you with tips and tricks for starting to invest in properties and give you all the information that you might need in your investment journey. 

Did you know that Jaipur’s real estate market has grown consistently by about 10% in the last few years, and demand is still increasing? Most of the homebuyers prefer size ranges between 1000-1500 sq.ft or a 3BHK configuration. Therefore plan your investment after carefully researching and analysing all the current factors and needs in the market. Make sure to choose the best builders in Jaipur to avoid future legal challenges and problems. Read the blog to know more. 

Understanding real estate investment: A guide for beginners

There are two ways you can earn profit through your real estate investment. First is through rental income, and second is through property appreciation. Now, let us see different types of real estate investment. Remember each investment comes with its own risks and benefits.

• Residential investment

Houses, apartments or flats for residential purposes purchased for rental income or capital gain are included in this type of investment. Beginners can earn a steady income from residential properties with good amenities and infrastructure located at a prime location. Some of the top, most-searched residential locations in Jaipur are, Mansarovar, Jagatpura, Vaishali Nagar and Malviya Nagar. 

• Commercial investment 

Commercial properties include office buildings, retail spaces, shops, industrial properties etc. These commercial properties are leased to businesses and therefore a location surrounded by necessities that can fulfil the needs of a working professional throughout the day is recommended to invest in.

• Vacation rentals

These are short-term rentals like Airbnb, farmhouses, etc. These plots for sale can provide a significant amount of income, especially during long breaks and weekends. 

Strategies for first-time investors 

• The buy-and-hold strategy 

This strategy tells you to buy a property you see potential in and hold onto it for a significant amount of time. With time and an increase in land rates, the property value appreciates, and meanwhile, you can also earn rental income from the property. It is a great way for beginners to start their real estate investment journey. 

• Fix and flip strategy 

It is a quick investment and return option but has its own challenges and benefits. Here, the investor purchases a property that needs to be repaired and renovated. Then, sells it at a higher price after making significant changes. 

• House hacking strategy 

It allows you to live in one part of the property and rent the other. For example, you buy a 3-floor residential property. But you require only the first floor for self-use, so you can rent the other two floors, earning a steady income every month. It requires minimum capital and is a great way to start investing. 

How to choose the right property: real estate tips 

Your investment is successful only if you choose the right property. Therefore, choosing the right property is the key! Right property means choosing the best builders in Jaipur, like the Manglam Group. Launched in 1995 they have delivered a total of 35000 units that include township residential and commercial properties. 

Here are some tips for you to help choose the right property.

• Research neighbourhoods carefully 

Choose a good neighbourhood. Look for areas with low to no crime rates, availability of good schools and hospitals, shopping centres, parks and public transportation. 

• Accessibility and safety

It means to have easy access to highways, public transport and other essential amenities. This makes a property more desirable and catches the eyes of the buyers. 

• Analyse future growth and potential 

Before buying, always analyse the future growth and the potential a property has. It includes the upcoming developments in the area, future projects etc. 

• Demand of location 

Keep in mind, market trends. Is the location in trend? Are people willing to move to this location? And many more. These factors help analyse the market demand and trends so that you can make a smart investment with low risks. 

Legal considerations and paperwork 

When you finally decide to make your investment, it is crucial to understand the legal aspects to avoid future disputes and protect your investment. Below are listed some key considerations. 

• Real estate contracts, leases and tenant laws 

Before making any decisions, research and familiarise yourself with contracts associated with buying and selling properties, lease agreements for rental properties, rights and duties of tenants etc. Understanding these contracts helps prevent any legal disputes and challenges that may come in future. 

• Hiring a real estate lawyer and accountant 

A real estate lawyer can help you better understand the terms and conditions. He/ She can help review the contract, see if there are any property disputes etc. Hiring an accountant can be beneficial for those who are unable to manage finances. An accountant can manage taxes, ensuring deductions and help you in the financial planning of your investments. 

• Property taxes and deduction 

Research and learn how taxes work in the location you are willing to invest and take advantage of any deductions available for real estate investors. Understanding these tax systems can help you maximise profits, reducing liabilities. 

Conclusion:

Real estate is an interesting way to start your investing journey. All you need is an understanding of some basic rules and regulations and some tips and tricks. With time, investments become increasingly profitable and earn great income. However, it is important to remember the risks associated with real estate and not be overconfident. Analyse your investment from time to time, make changes accordingly to minimise risks and invest with the best builders in Jaipur.