Investment in real estate is not same as buying a mere property for use, now days it requires a thoughtful process to buy or sell a property. Infusion in realty market is a huge risk. Investment in realty sector should be done very cautiously. Before buying or investing some important additional factors should be considered.

Funds: If a loan is being taken for the property, most lending firms fund only 75-80 pc of the property value and asks the buyer to arrange the rest amount.

In the current age, the buyer must ensure that he have savings at least 40-50% of the property value. It is more preferable to apply for a bank loan rather than taking loan from a non-banking institute. Before clearing the loan the bank will cross check and verify certain minute things which the buyer might over look.

Right spot: The most important factor before investing. The investor should verify thoroughly the actual development of the area where the project is being constructed keeping in mind for livability and commercial values.

It is very necessary to check the transport facilities, health facilities, and social amenities before taking any final step. Location influences the returns more than any factor.

According to a market survey conducted by Crisil, the average return in India over the past ten years has been 12-15%, but due to some location problems some have fetched very low returns also.  If the location is not developing according the market demand it can bring disastrous returns.

Project and Developer: Before finalizing the project, the buyer must check the developer’s track record and deliveries of past projects. The investor needs to verify all the legal and the Government approvals regarding the project, obtained by the realtor.

Apart from checking all this things, the buyer must check the quality of construction, facilities and amenities given and the annual charges charged by the developer.

The second part of the realty market in selling. The realty investor should be ready to keep the property intact for 7-10 years before selling it. The idea of selling the property for short-term profits is a bad idea.

The growth index of property prices is very high. The average prices across top cities in India have swelled up to 12-15% annually.