It is a common fact that Indians love to buy property. They also take a home loan to invest in houses. It is very high on the list of life goals for every person landing his or her first job. However, there are a few important things to consider before you pick a place to invest. This is regardless of your reason to invest. Whether you intend to lease the property or sell it or even buy it for personal use, here are some points that you should know before picking a place to invest in property:

• Location, location, location

This should be your mantra when you go around looking for a place to invest.  Choosing the right location can help you reap immense benefits for a long time. For example, if you have your eye on a place, check if the area is a developing one or not.

If the area is under developed and has no growth options in the future, you might get the place for a small price. But your income from the property might not be substantial. On the other hand, investing in a highly developed area might burn a giant hole in your wallet.

• Past property rates

As an investor, it is important that you check out how the property rates have fared in the past few years. This gives you a general idea regarding the demand for the property. You need to be careful if the prices have dropped or stagnated over the years. This could be an indication that the property has been declining in demand.

• Reliable developer

A reliable developer or the lack of one can seriously impact your investment. When you go looking for real estate, there are two fundamental features that the property developer should have: Credibility and track record. Otherwise, you might get entangled in legal battles faster than you think. The best way to pick out good developers is to read online reviews, study the developer’s track record, visit construction sites and talk to other owners. This way you will know how reliable the brand is and whether your money is in safe hands.

• New vs. Existing

This is a common question posed by people wishing to invest in real estate: “Should I invest in new constructions or already existing establishments?” While both these options have their own pros and cons, it ultimately boils down to personal choice. For instance, the advantages of selecting a new construction include attractive prices, clear documentation and the option of customization. The disadvantages could include potential delay in possession of property and increase in costs. On the other hand, it is possible to get exciting offers on existing establishments but it is important to conduct a thorough check on previous ownership and other legal matters.

• Cash flows and profits

Buying a real estate property is an investment. And like any other investment, you need to know how your property will generate cash flows and ultimately profits. Develop financial projections to see how long your investment takes to turn in profits. There is no point in investing in a piece that projects no future potential.

For this reason, it is very important to have clarity on investment purpose. Are you interested in leasing the property? Or do you want to buy and sell the property. While both are investments, they require different attitudes towards profits and time horizons.

Bottom line:

Investment in real estate offers good returns. But it is important that you keep the above points in mind before you invest to enjoy good returns.