9 Steps to Get Started in Property Investment

Real estate is an imperishable asset, ever increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and about the only indestructible security. ~ Russell Sage

Investing in property often turns out to be the most profitable business decision one ever made. But it is not child’s play. There are so many critical aspects that need to be considered while researching and deciding on a property you are interested in purchasing.

Property investment, like any other business decision needs to be carefully thought out and planned beforehand. The time you spend planning and researching will help you make wise investment decisions so that you will not regret in the long run.

Here is a step by step guide on how to get started in property investment.

1. Fix Your Budget

Even before you start thinking about your purchase, you need to figure out how much money you can invest right away. Many people skip this step and end up buying properties that they really can’t afford. Take some time to check your finances and set a budget for your real estate investment.

List all your assets, your current income and your regular expenses, and then decide on how much you can afford to spare for the property investment. It doesn’t have to be a hard figure; just having an approximate amount will help you make better decisions regarding your purchase.

2. Identify Your Income Sources

The less money you owe, the less income you’ll need and the less you’ll have to save for tomorrow. ~ Suze Orman

While you are finalizing your real estate budget, you also need to note down where you will be getting the money from. Can you dilute some of your other monetary investments? Will you have to take a loan? Do you have an inheritance you can rely on? Answering these questions will help you identify all the sources where you can get the money for your property purchase.

3. Get Your Loan Pre-approved

If you need to take a property loan from a bank or a financial institution, you need to ensure that you are eligible for it first. Most banks have an eligibility criteria depending on the loan amount. Research the loan rates and conditions of different banks, compare them and finalize on one of them. You might have to show them your income statements to verify that you are indeed eligible for a property loan.

4. Decide on the Type of Property

You can choose to buy a plot of land, a commercial building, a single apartment, a villa or even an office space. Think about what kind of property you’d like to invest in, and then go forward. It is imperative that you have a clear idea of what you’d like to do with it in the future before you make your final decision.

5. Identify the Location

Find out where the people are going and buy the land before they get there. ~ William Penn Adair

Before you start looking at individual properties, you’ll have to decide on which locality you’d prefer to invest in. This decision will also depend on the budget you’ve set apart for your property. Properties in the heart of key cities will cost more than those on the outskirts. So, consider the property price in the locality before you finalize on it.

6. Start Researching Properties

This is where the real property hunting begins. Pick a few properties that catch your fancy and research them thoroughly. You can check a few online real estate portals, ask local brokers, and even friends and relatives who might have some prior experience in buying a property in that locality.

7. Finalize the Property

Based on the results of your research, you can then finalize on a property that suits your budget and has all the amenities you require. You do not have to make a hasty decision, though. You can sort out your options and take your time before making your final decision.

8. Negotiate the Price

Everything is negotiable. Whether or not the negotiation is easy is another thing. ~ Carrie Fisher

Once you’ve finalized your property, negotiate the property price with the seller. Most of them offer deals and discounts if you are willing to pay a bigger down payment. Take a look at what the prevailing property rates are in that area, and use those facts to negotiate the price and terms of sale with the seller.

9. Seal the Deal

If you are satisfied with the price, and terms of the sale, you can go ahead and seal the deal with the seller. A legal agreement will have to be signed by both parties to ensure that the sale contract is finalized. You can check our article on how to register land in Kerala, and follow the steps outlined there to proceed with your purchase.

I hope this article has demystified the process of property investment for you. Do let us know if you have any other queries or doubts in this regard.