An ideal investment property is one which offers a capital appreciation of minimum 10 percent per annum. So, if you are investing in real estate to fetch good returns, then you need to concentrate on the location of the property. Return on investment in real – estate is directly proportionate to the location of the property. Hence, before purchasing the property, one should very particular about its locality. Few points of consideration at the time of investment in real – estate are as follows:
• Invest in a growing area: Always invest in a growing location not in already established areas. For a middle class person with mediocre income, cost of property in established area is very high and mostly out of reach. If you want to purchase property in established area, then you need to compromise it with a small sized property. Secondly, the rise in the value of the property in pre established location is lower in comparison to the growing area. The cause remains in the nature of the real estate market. The prime or established areas reaches their worth over a definite phase of time afterwards it becomes stagnant.
• The property should have general amenities for value addition: If the property has general amenities in the nearby area, then it adds a great value to the worth of such property. For example, if the property has shopping complex, multiplex or other general amenities like swimming pool, open area, parks & playgrounds for kids, then everyone gets easily attracted, which in turn increases the value of your investment. If the property does not have such facilities, it should have a scope of such expansion plan. The possibility of better extension plan is more in the growing areas because its location is generally not overcrowded and have ample space for such amenities. Most of the upcoming real – estate projects have all these facilities with their projects to lure more and more investors.