4 skills to know when buying property in the low market scenario
The real estate market in India currently facing challenging times. In the last few years, there have been small changes that have impacted the realty sectors.
- Such as the Demonetization exercise which put brakes on the real estate market growth in India.
- Further impacting other areas like realty firms, brokers, agents, contractors, etc.
- In addition, the Central government passed the Real Estate Regulation Act (RERA) putting a lot of burden on small and mid-level builders leading to stalled and unfinished projects.
All this led to the low market scenario in this industry.
What should you consider when buying in the low market scenario?
- Location Location Location > Even if you are getting an unbelievable deal too good to be true! it probably is. Ensure that even if you have a cheap product the location of the product matters most!
2. The product that is the use? for investment? or self-use?
Make Sure Before Investing in a property that worth a buying, because if you buy that property that can be a good asset for you. When it comes to Self-used check if builder or contractor giving you all the amenities as per describe while buying a property.
3. Pre-leased if you are looking for an investment then a pre-leased property gives an immediate return
Pre-leased commercial property can give you up to 14% in returns. While residential properties give 3-6% as rental yield, commercial properties offer a high rental yield in the range of 9% to 15 %.
4 skills to know when buying property in the low market scenario.
1) Identify Your Niche Market
Whether you are ready to move in real estate business but be very specific in your niche market because real estate industry it has a wide scope.
whether you working on housing development, land buyouts, agricultural development, commercial spaces, or be just a simple landlord.whichever you choose to be knowledgeable about that.
2) Do Some Research
Now you have chosen your Niche, its time to do research about that niche. Because understanding the market it is a very important skill in the real estate industry you should know. Your knowledge is your greatest asset in this type of business. Understand your customers who they are and what they do, this step will help you to understand your potential customers.
Do the research and be open to learning new things every day, because the real estate industry is always evolving so why can’t you.
understanding market psychology, service options, financial comprehension are some of the areas real estate agents, brokers need to develop to stand out from the crowd.
3). Money side
Now you have chosen the niche and research the niche completely, its time to talk about money, because money is the main part of the business when it comes to real estate.
When the economy is the tighten, then funding will be not accessible easily and also sellers not ready to compromises with a word to word. for a realtor, it is a hard time.
You need to secure a certain amount of money in order to jump-start your business. Whether the market is harder or better, you have to keep persisting without being discouraged.
4). keep learning
The more you learn the more you earn, keep learning from markets, Remember that real estate is not like a retail store, wherein goods are easily sold and bought.
There are a lot of factors that can quickly cause changes in the industry, such as the economy, calamities, stock exchange, etc.
Strong entrepreneurial skills and professionalism are a must in this industry.
Sources – India infoline, lifehack