Getting started with investing in residential real estate!

Have you spent hours scrolling through real estate websites and imagining yourself as the proud homeowner? The residential market is a terrific way to generate passive income and develop long-term wealth. Buying rental houses includes purchasing a residence and renting it to tenants. Rental revenue can cover mortgage payments and provide constant cash flow. Once the property’s value grows over time, you may sell it for a profit. But with the Indian economy being as volatile as it is, making a wise investment decision can seem daunting. So, here’s the step-by-step process for investing in residential real estate.

Step 1: Have a clear investment plan

The first step to any successful investment is having a clear plan. Are you seeking a long-term or a short-term investment? How much money do you want to invest in the real estate market? Do you want to buy a property or invest in a real estate fund? You need to answer these questions before diving into real estate investing. Then collect images or draw illustrations on a vision board. Add the amenities you need and want, like a swimming pool, terrace, garden, gym, etc. You can also add a picture of yourself standing before your dream property with a glass of champagne.

Step 2: Search for a good location

This can be tricky, especially in India, where the real estate market is highly competitive. However, with patience, you can find a good location to give you the best returns on your residential real estate investment. Once you have a clear plan, it’s time to do some research. Research India’s current real estate market, what are the best locations to invest in, and what kind of properties are available. Try out these alternatives if you want to explore freakily. Well, the easiest way is to ask your mom because she knows everything good for you, including locations that are good for real estate investment. And if you believe in the stars, you may consult a fortune-teller or astrologer. They have special powers that can tell you which locations suit you for investment. Or simply spin a globe and randomly pick a location. Who knows, it might just work!

Step 3: Hire a trustworthy real estate agent

This is important because you don’t want to buy a property that is not worth the money you paid. Finding the right real estate agent is crucial to wise investment decisions. But not all real estate agents are trustworthy. Some are only interested in making a quick buck. So, how do you find a reliable real estate agent? Well, you can start by asking for recommendations from friends and family. Once you have a list of potential real estate agents, take the time to research their credentials and interview them to find the right fit for your needs. Trust your instincts, and do not ignore red flags when choosing a real estate agent.

Step 4: Research the property

Before you pick the perfect residential property, research the ins and outs. The amenities in the property, locality and society’s amenities, construction history of the property, materials used, nearby destinations, ease of transportation, and various other factors determine the returns you get. Failing to research before buying could negate your property investment. The other way to know about the property is to talk to the neighbors, something which most of the people ignore before buying a residential property. You can also get an idea of the monthly and yearly expenses and bills, current market rates, the development of the area, and the scope for future development.

Step 5: Negotiate like a pro or let the Agent do the work

Before entering into negotiations, define your goals and what you’re willing to compromise on. Consider factors such as price, closing date, repairs, and contingencies. Once you get a clear idea of the market rates and the property’s condition, you are good to negotiate for the residential property. It will also ensure you are not being fooled into paying more than what a property deserves. Negotiations can be stressful, but staying calm and patient is important. Don’t let emotions cloud your judgment.

Step 6: Don’t forget about the paperwork

Investing in real estate in India involves a lot of paperwork that can be mind-numbingly boring. Someone unfamiliar with the real estate industry may get scammed into buying a property with fake papers. To avoid such issues, hire a Civil Lawyer and get the property papers legally verified. You must handle various legal formalities from property registration to stamp duty and lease agreement or rental agreement to property management agreement. So, why not make it more fun? Turn it into a drinking game. Take a shot every time you have to sign a legal document. Hold on! Don’t do that. But you got the point.

Step 7: Decorate your residential property like Pinterest

After successfully negotiating a good price for the residential property, the next step is to decorate it like Pinterest pins. Decorate your property to look beautiful and attract potential buyers. Mixing and matching patterns is a popular trend on Pinterest. Use different textile patterns, such as throw pillows and curtains, to add texture and visual interest to your residential space. Vintage pieces can add character and charm to your home. Look for unique finds at thrift stores, antique shops, and flea markets to add a one-of-a-kind touch to your decor, and enjoy an ice cream scoop your way back home. Even if that doesn’t work, you can hire professional interior decor. Remember to have fun and experiment with different ideas to create a space that you love.