7 Steps to Begin Investing in Real Estate

7 Steps to Begin Investing in Real Estate

In the previous blog I discussed, how early in our lives the concept of savings is introduced and how important it is to ‘invest’ your savings. 

Here are the 7 Steps to enter into the real estate market and begin investing:-

Step 1: Know the market trends

How? Read the paper, find out what is trending! Look around when you are travelling – you will find advertisements boards. Do your internet search.

Step 2: Make a list

Gone are the days when you used to make a ‘wish’. If you really want to begin investing make a ‘list’ of the properties which interests you or have come on to your radar while you were doing your homework (by homework I mean Step I)

Step 3: Reflect on the success factors

Now that you have a list, one by one go through each of them and think about what makes it stand out. 

Such as location? May be it is closer to a business hub and people are visiting that area frequently. Or it is in the vicinity of an airport and development in the area is happening at a faster rate. 

Developers i.e. who is developing the project? Find out their previous projects, their level of completion and success. 

Any political affiliation? etc.

Step 4: Go out and network

Attend the property festivals in your city. Graana and Zameen have organized quite a few in the last years. Next time it happens, take your family along and find out what the real estate market is up to!

Step 5: Right time to invest is..

Whatever you do – timing is the most important aspect of it!
Invest when the success factors are compelling, and the project is entering into the market. Best returns will be if you are the first owner of it. 
For short term returns, sell it as soon as the project kicks off. For long term; keep it as long as you can. All else depends on the satisfaction of your appetite.

Step 6: Diversify your portfolio

This will cover risk side of your investments. Don’t put all eggs in one basket. However, it will take time. 
Sleeping poor at night and waking up as the richest person on earth the next morning – does not happen in real life.

Step 7: Insider Information

Well! Well! Well! Here comes a difficult, riskier but the most lucrative part. All you must ensure that the informant can be trusted, know his / her job and is there to stay in the market. 

Find out a reputable real estate organization – who prefers relationship building rather than profit making! I mean everyone must run their homes; but it should not be at the loss of others. 

Stay in contact with them; keep yourself updated with the real estate market and as soon as any opportunity clicks; invest right away!