Real Estate Investment – A beginner’s guide

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Real Estate Investment in Pune can be a huge pay off, if you know the market thoroughly!

We Invest in various stocks and shares but the average investor should also consider real estate investment as a profit-making option.

Pune Real estate has seen a steady rise in rates over the years and hence it is considered as one of the best investment options. Commercial property in Pune has fetched the highest return for the investors.

There are many ways to get started with real estate investment and below we will break down some of the ways with which you can get started with real estate investment –

What is real estate investment?

Real estate investment is the purchase of land, residential property or commercial property with the intent of earning money. Let us break down the different categories of real estate –

  • Residential Real Estate – Consists of houses, vacation properties and any other spaces which is suitable for people to live. The return on such properties is generally not as high as the returns on commercial property in Pune.
  • Commercial Real Estate – This consists of office spaces, retail stores and shops. The return on commercial real estate is much higher than the return on residential real estate. In the Pune real estate market, investment in commercial real estate is considered as one of the best options of real estate investment.

How to start your real estate investment journey?

You must first decide how much money you are willing to invest and then you must decide whether you want to invest in commercial real estate or residential real estate. After making these decisions, one should thoroughly study the Pune real estate market in order to ascertain the rent received from different areas.

These are the first few baby steps you should take to begin your real estate investment journey. You can also jot down some of the best builders in Pune to ease your decision-making process.

Now with the first few steps out of the way, lets look at some of our investment options –

Purchase a rental property

You can buy a property and become a landlord. This will generate a guaranteed monthly income, as long as you put out this property for rent. Commercial property in Pune can be purchased to lease out. Offices on rent are a huge source of income and provide a steady flow of money to the landlords.

Such offices on rent require to be maintained with utmost care by both the landlords and the tenant in order to ensure maximum returns. So, make sure that maintenance is given high importance as this will ensure a high return on your real estate investment.

How to purchase a rental property

Before you start to invest in Pune real estate, you must know your local real estate market. You should know the rates of both residential and commercial property in Pune. For e.g.: if you are looking to invest in wagohli, you should know the wagohli real estate rates.

Knowing the rates of both residential and commercial real estate in your preferred locality will aid you in making a smart purchase and in offering tenants a fair price. You must research on the Pune Real estate market. One can ascertain Pune commercial property rates as well as residential property rates by browsing on platforms such as Magicbricks and 99 Acres.

Real estate investment trusts (REITs)      

Investing in Real estate investment trusts is similar to investing in stocks. As an investor, you give money to a trust or corporation which purchases a property. You’ll get a portion of the dividends as the property appreciates. REITs are bought and sold on most major stock exchanges.

Most likely you’ll be dealing in publicly-traded REITs. Accredited investors with a high net worth may be able to access private REITs, these trusts require a higher upfront investment as compared to publicly traded REITs.

The Pune Real estate market thrives on investment in commercial real estate. The above-mentioned options are the most popular options for real estate investment.

Real estate investment is lucrative and exciting as it requires a lot of practice and patience. So, you must think through which type of real estate investment will be best for you before signing on the dotted line.