Understand Types of Real Estate

Before you start your real estate investing journey, you should be well aware of the categories of real estate in the market. There are majorly five to six types of real estate entities in India. They include residential, commercial, retail, industrial, land, and multi-purpose. Each of these categories has its own financing requirements, a lock-in period for best returns, legal aspects, and a lot more specifications. It is a good practice to learn about all the types of real estate, match your financial goals, and then invest in real estate.

Research About the Market

Like every other investment, real estate investments are also market dependent but have relatively fewer fluctuations than the stock market. To give an example, during the COVID-19 pandemic, the commercial and industrial real estate markets faced a slump. Whereas, the residential real estate sector continued to grow because of the lockdown and work-from-home system. And, to know how the real estate market is behaving post-COVID in 2021, you can read Deloitte’s report here. To time the market accurately and make the right investment decision, always have a good understanding of the real estate market.

Safeguard With the Help of Legal Entities

Frauds associated with the real estate industry have always prevailed as a threat to new investors. Every second-day news of illegal real estate dealerships pops up in the media. Hence, it becomes crucial that you are well-versed in all the legal procedures and compliances. Be it the registration process, ownership rights, taxes, liabilities, or obligations, you should be aware of the rules that fall in place. You can read the ICLG’s 2022 Publication to know about the real estate laws and regulations in India. It is always advisable to consult a law professional to keep all the legalities in check.

Keep Your Savings and Liquid Cash in Check

A common mistake committed by a lot of new real estate investors is engaging all your savings funds. Real estate investments are a long-term game and take time to liquidify your funds. In that case, whenever you need money immediately, it becomes difficult to pull out of real estate investments. So, make sure you have a good liquid saving amount for emergencies. Also, don’t forget to diversify your money across various real estate assets including REITs, partial ownership, etc.

Partial or Fractional Ownership

The biggest reason people fear investing in real estate is due to the huge capital requirement for purchasing/leasing the whole property or land. But fortunately, you don’t need to invest in the entire property or land every time. You can buy a fraction of it and keep your partial ownership with other investors to enjoy a collaborative return rate. Partial or fractional ownership of real estate is a great way to start investing if you don’t possess enough capital initially. MyProp provides a platform for fractional ownership of well-researched land in Vadodara. Get in touch with us to know more!

On An Ending Note

Investing in real estate can seem an overwhelming task in the beginning but if you are clear with the fundamentals and legalities, it becomes hassle-free. Hoping that this blog helped you gain some insights into investing in real estate. Before investing in real estate, you can always consult a real estate advising agency to get more clarity.