Dear Sir,
Greetings !
I am 28 years old, I belong to a small district in Jharkhand, I want to buy a flat for an investment purpose, which city shall i buy the flats as i can get good rentals. Should i buy a new flat or resale flat ? Shall i buy one flat 3 bedrooms or 2 flats 1 bedrooms each, i have budget of 30 lakhs on loan, My target city is Jamshedpur or Ranchi. How shall i proceed and what are important factors to consider before buying flats. Unfortunately, i do not know anything about buying flats.
Thanks in advance for your kind advice.
Regards,
Ram
2 Answers
Dear Ram,
Type of Flat - It is purely your / your family's choice. I do not have much idea about the real estate prices that are prevailing at your location.
I can give general suggestions :
- Personally, I do not like investing in a Flat. I prefer investing in a piece of land or individual house (it can be a small one) to investing in a Flat.
- If you are looking this for investment (rental income) purposes, check out if rental yield is good or not. For example : If you invest say Rs 10 Lakh and the rental income is say Rs 24,000 per year, then rental yield is 2.4% (24000/10Lakh), which is very low. Ideally if the rental yield is say between 4 to 6%, it can be considered as a good deal.
- You need to find out if the Apartment has CC (Completion certificate, if ready-to move), Occupancy Certificate and NoCs from all the local civic authorites or not.
- You can consult a local civil lawyer and take legal opinion on your shortlisted properties. You can take help of a local trusted real estate agent also.
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