Investing in a property could prove boom or bane. Right decision would lead to boom and a decision made without analysing all pros and cons of buying a property would imply bane. There are many factors that should be considered while buying a property. Some of these factors are listed below:
Budget: First and the foremost aspect that you must consider before buying property is your budget. Your budget will decide the size of property, type of property and its location. Needless to mention the higher the budget the better you can buy.
Holding Capacity: Besides purchase budget, you also should work out for how long you can hold that amount if it remains invested in property? Since property is a fixed asset, the gestation period of selling and buying property is long term. Higher holding capacity would reap greater benefits in long run for you. However, if you buy the property on loan or if you have less holding capacity then you may have mental pressures of selling it sometime or the other, due to which you may not be able to sell it at your desired price and at your desired time. Hence, good holding capacity is recommended for buying a property anywhere.
Target Property: Once you have figured out amount for long term and short term investment, accordingly you can choose the property you hope to buy. You may choose a residential or commercial property. Choice can also be made between unconstructed, semi-constructed or fully constructed property. Furnished and unfurnished residential properties are also options for buyers. Each type of property has its own cost and benefits. Find out the one most suitable to you.
Location of Property: Like type of target property you are looking forward for, it is essential to take account of location of property. The location should be easily accessible for investors and buyers. If property is located at a location with great current and future economic prospects, it would facilitate quick liquidity and that too at increased prices. For example, if you buy a property for sale in Pune, Mumbai, Bangalore, Hyderabad, Delhi, Chennai, Calcutta, Ahmedabad, Lucknow and similar other big cities; property is expected to be highly mobile and would yield a good profit.
Market Conditions: Current property market conditions and expected future market conditions determine the movement of property to a great extent. For investment, a state of recession in market would be the right time. This will serve you a worthy property at economical price. Though, for reselling your property togain profit, the right time for sale would be expansion time or peak time of property market.
Timing: Timing of buying and selling is also very important. If you miss to buy or sell the property at the right time as per economic, political and social conditions of society, you may miss a valuable chance. However, if you punch the deal at the perfect time, then undoubtedly the deal would prove profitable.
Those who carefully analyse above mentioned factors and buy a property after considering these factors; are expected to gain profit from their investment in property.