How to Spot the Best Property Deals in Your City
When it comes to investing in real estate, either for buying the first home or buying an investment property to assure a lucrative return, finding the best deal in the city in line with particular objectives and budget emerges as the top concern. Whether you're aiming to build a robust real estate portfolio to secure your financial future or generate passive income, the deal you choose decides the success rate of your investment. There are no fixed parameters to decide the quality of property deals, the sole criterion is suitability to personal expectations and investment goals. However, certain tricks may help you spot the best property deals in your city.
Understanding - What Is a Good Property Deal?
A good deal for me might be a bad deal for you. Understand what a good property investment means for you. What would you be happy with? Is it just the return you get? Is it your first home, having all the amenities and facilities? Everyone has different perspectives to scale the suitability of a property deal. Here is how to evaluate a good deal in the property market-
Equity in the Property the Day You Buy: Ideally, you prefer to buy a property at below the market value, which locks your equity into the property the day you buy. A property purchased at a lower price than the standard market price makes money the day you buy, instead of waiting for the cooling period and the property market to go up.
Ability to Add Value: Properties where you can add value are considered good. The more value you add, the higher the sale price.
Rental Demand: Consistent rental demand assures passive income, as well as the property attracts more buyers.
Cash Flow and Return on Investment (ROI): Any investor renting a property for the long term expects a positive cash flow on a monthly basis. There should be some profit left over each month after meeting out all of the expenses, including maintenance, taxes, EMIs, etc. Ideally, rental income should be at least 125% of the monthly mortgage interest.
Usage: The property you buy should be flexible for use. It should be suitable for your personal use as well as for renting.
Seven Effective Tips to Help You Spot the Best Property Deals in Your City
Before diving into the search for great property deals, it’s essential to understand the real estate landscape in India. Your focus areas may be Property for investment, residential property, and commercial space. Here I share some strategic tips that may help you uncover hidden opportunities and find the best real estate deals in your city-
Utilise Online Real Estate Platforms: An Increasing number of websites and apps put the world of properties at your fingertips, allowing you to optimize your selection by using different filters like location, type, amenities, size, price range, etc. Listings are updated in real-time. AI-driven platforms personalize property searches for buyers. Most real estate websites allow free membership to keep you updated about the new listings of properties you are looking for. Some real estate platforms you can explore to find appealing deals are MagicBricks, 99acres, Makaan.com, etc.
“The IRIS (Indian Residential Index for Online Search) report states, “a remarkable 10% month-on-month increase in online property search activity for August 2024—the highest reading since December 2023”- CNBCTV 18, September 25, 2024.
Participate in Property Auctions: Public auctions in real estate allow you to visit the property and place a bid for it. The property auctions are typically conducted by private lenders, financial institutions, and banks. Auctions provide a transparent and competitive environment for buyers. Participating in a real estate auction with a well-planned strategy and preparation often leads to excellent investment opportunities.
Use Networking and Relationships: Participate in networking activities and cultivate contacts with industry professionals to increase the chances of finding lucrative property deals. Relationships and networking often lead you to come across the off-market properties available at a lower price than the current standard price. Investment clubs and meetups provide opportunities to connect with like-minded individuals.
Be Active on Social Media and Online Forums: Social media and online forums act as essential tools for real estate investors in their quest to find the best property deals in the city. Online forums are valuable for in-depth discussions and knowledge exchange. Some sellers of distressed property often use social media to reach potential buyers directly. However, beware of fraudsters. Online forums and real estate-specific communities involve participants who tend to share potential leads or deals they come across. The crowdsourced information provides insights into the local market trends.
Check for Distressed Properties: Distressed properties are often sold at reduced prices because of financial issues being faced by the seller. Distressed properties may need renovations, but these are often available under market value, presenting excellent opportunities for profit.
Explore Upcoming Areas: Cities like Jaipur are expanding fast, encouraging builders to come with new projects. Investing in a developing area drives excellent earning opportunities because the property prices increase rapidly. For example, in Jaipur, the projects like Radiant Casa in Malviya Nagar, Windchimes at Ajmer Road, Spring Villas at Main Tonk Road, Mansion Royale Opp. International Airport etc.. are the return promising property because of ongoing fast-paced development.
Work With a Local Real Estate Broker: As an investor, determine the available budget, identify investment criteria, choose the preferred location, property type, required size, required features, and essential amenities. Engage a local real estate broker to provide you with real-time insights into the market and appealing offers. Leading real estate brokers and agents provide detailed market analysis and comparative market analysis to help you make informed decisions. Involving a local real estate broker has been a traditional practice, and you need a real estate broker even after shortlisting appealing properties through different channels to make the right decision with confidence and make the entire property buying experience seamless. So, why not involve a real estate broker at the initial stage of buying a property to get advantages like broader inventory, property inspection management, personalised service to meet your specific objectives, expert guidance throughout the entire process, negotiation skills, growth predictions, etc.
