Buying a home comes with many benefits – it makes you emotionally content, secures your future residence and brings in long-term monetary gains. As a matter-of-fact, buying a home is an investment that most Indians consider as a symbol of financial stability. India, over the last decade, has seen a great surge in real estate construction, with better infrastructure and a higher standard of living. According to a study by Global Construction Perspectives and Oxford Economics, by 2025, India will add 11.5 million homes a year.
However, the question that comes to mind is whether one can get a return on investment while buying a home? The answer is yes. But, there are several facets that contribute to it.
Before buying a home, one must take into consideration the purpose of owning a home – to be the end-user of the property, to invest and earn rent or to resale the property for profit. In addition, other elements that contribute to the value of the home are location, affordability, home loans and insurance. One must consider and do a thorough research of the market and what the builder has to offer before choosing the right home.
Choosing the right home for investment
Location and connectivity – Whether one is an end-user or not, it is important to understand that a location that is closer to public transport such as bus and railway stations or airports, super markets, medical centres and schools will have more takers. Especially, if one is planning to give the house for rent or resale, good connectivity will be the foremost reason for appreciation of a property. This affects the value of the home. Choosing the right location is imperative for those who commute on a daily basis.
Amenities – Infrastructure plays a vital role here – proper water supply, uninterrupted electricity, safety and security etc. one can see a good return on investment. Today, builders provide a wide range of amenities to home buyers, to match their lifestyle. From kid-friendly facilities, CCTV surveillance, swimming pools, power back-up, club houses and more. Homeowners have plenty of options to choose from.
Radiance Icon is one such property that offers amenities and more to address all the requirements of an Indian family.
Costs of owning a home
While you do not have to pay rent anymore, based on the location and amenities provided by the builder, the property value will differ. A good locality and availability of facilities, ensures a better price for the property. But that is not all that a homeowner has to take into consideration. Property tax, real estate agent charges, notary fees, registration, maintenance of home and in case of loan – interest fluctuations, will affect the overall cost of owning a home.
Return of investment
When buying a property, in India, as an investment, one must look at the long-term gains. It takes about four to five years, after ownership, before one sees a substantial profit. According to the Reserve Bank of India’s House Price Index, the average return from owning real estate in the last decade has been 11.6 per cent per year. Therefore it is important to consider all the notable and crucial costs involved in owning a home, before looking at it as a credible investment.
So is it worth it? Yes. You save money, build equity, appreciate tax befits, freedom to do as you please with the home and above all, enjoy peace of mind. In the coming decades, real estate experts have predicted great potential for homeowners with government initiatives playing a major role.
So, if you are looking to invest in your future – start with a wonderful home!