For beginners, the real estate business can be extremely baffling and daunting. Since it involves intense commitment and great insight into the market beginners tend to struggle to find the best and most profitable investment.
In addition to that, naive and inexperienced buyers may fall prey to the hands of dishonest sellers/builders.
Beginners in real estate are most likely to fall into the trap of double-dealing which further causes them to lose all their hard-earned money. They might face hoodwinking of TITLE as the seller can definitely make excuses and deny being transparent with regard to the title deed of the property.
Moreover, some real-estate investments like fix-and-flips and commercial properties, are way too complicated for beginning investors. So what are the best investment and the points that a beginning investor should consider:-
1. Acquired legal and financial understanding:- While real estate development has largely been unregulated in India, something that enabled investors to save on taxes, in the past half of a decade, several rules and regulations have been enforced to eliminate the misuse of real estate investment in India. Beginner investors who aspire to invest in real estate, and build a fortune in their venture, must have a broad understanding of all these laws act. Some of these laws include the RERA act, the GST act, and the Benami properties act.
2. Invest in turnkey properties:- Now what is turnkey property? So, it is a strategy wherein a real estate investor buys a property owned by a company. All the renovations would have been applied by a company already and the property is ready to give on the rant. Such investments are beginner friendly as they are easier to finance, manage and instantly start making money.
3. House Hacking:- If you don’t have the capital to invest in a property, you can turn your primary residence into an investment property. If you own a duplex or triplex, it is even more convenient to rent out the spare rooms/floors but you can still do this in a single-family home.
4. Manage real estate properties:- This is another key benefit for a novice who wants to step into this domain. There’s a high demand for property management co. Many investors don’t have the time to manage multiple properties and they are more than willing to pay someone else to do it for them.
5. Lending money to Investors:- In this, if you have tremendous capital to invest you can finance a mortgage for real estate investors. You lend money to investors without buying a property.
Now that you have grasped the idea of how as a beginner you can invest in real estate. The key is to seek the assistance of a financial advisor, and understanding the market, and how this domain works.