How To Become a Real Estate Investor in India (Quick Tips 2022)

How To Become a Real Estate Investor in India

Have you ever wondered, How To Become a Real Estate Investor in India? There are many people who realize that investing in real estate is a business that manages to be profitable and with a great guarantee.

In order to be successful as an investor, you need to have a broad vision and knowledge about the properties you want to acquire, to obtain secure profits and consolidate personal financial freedom

If you are not familiar, but want to learn about it, we are here to help you! At Activa Inmobiliaria we give you tips that will help you be a real estate investor and not desert in the attempt.

1. Set the amount of money you are going to invest in the property

To start being a real estate investor, it is imperative to determine the level of income that you will earn. Once you have the established amount, you can set the investment capital and thus, you will start the acquisition of the property.

You must not forget that the price of the real estate is according to certain privileges that it possesses. It is very likely that an apartment that is more than 20 years old, will not have the same price as an apartment that is under construction.

According to your possibilities, it is important to choose the alternative that is at your convenience and fits your pocket.

2. Evaluate the location of the property

It is important to determine if the place where the property is located gives the possibility that people are interested in its rental. For example, a property that is located on the outskirts of the city will have fewer stakeholders than one that is located in a central area.

Most of the apartments or houses that are close to shopping centers, parks, schools, markets and busy avenues are the most requested by people.

The reason is simple: ease and comfort. By living in a property that is close to places that are often used on a daily basis, you have the advantage of having everything at your fingertips.

3. Focus on Return on Assets (ROA)

One of the main points that an investor must take into account is to know how beneficial the acquisition of a property will be.

There are many properties that apparently can generate great income, but it is necessary to verify through a formula if this hypothesis is true.

To obtain the return on assets, a division must be made between the property price, and then add the rents and capital gains that it will generate over a period of time. According to the results, it will be possible to determine if the property becomes profitable or not.

4. Housing Bonus and Exemption in the payment of the Transfer Tax

Through Decree 389-15, the Executive Power declared 2016 as the “Year of Housing Promotion”, in compliance with article 59 of the Dominican Constitution on the Right to Housing and the Duty of the State to make this right effective. something called First Home Bond, in which the buyer is granted a bond that is equivalent to approximately 8% of the property’s value.

Where does this 8% come from? The purchase of construction materials by the promoter of the housing project comes with a series of tax discounts that are translated to the buyer that range from 6% to 10% and therefore generally averages 8%.

Both the First Housing Bonus and the Transfer Tax exemption require a series of qualification requirements for the real estate project in question, these are determined by the National Housing Institute (INVI). The main requirement being that the home qualifies as Low Cost, to date the maximum amount is (RD $ 3,627,969.76) and as well as other requirements of the Buyer such as that this is their first property. For more details on the First Housing Bonus, refer to the website of the General Directorate of Internal Taxes (DGII) by clicking here .

5. Flower inversion or place

Imagine going to the Nursery and buying a fruit plant with flowers, you sow it, it grows greatly, the fruits are visible, right there you sell the plant in its entirety. Can you imagine it? Ok, now we extrapolate that example to a Housing Project bought in plans and before delivery you resell it.

With this option you take advantage of the capital gain over time to sell with a margin and thus become investment capital. You do not have to invest the entire value of the property because you are going to comply with a payment plan that generally does not exceed 50% of the total value of the property.

I recommend in both investment cases the advice of a real estate expert and thus maximize the chances of success in achieving the goals of obtaining a property or sufficient capital to fatten your bank account. At Plusval Realty Group we have a highly qualified team to help you in this type of investment as well as the existence of an inventory of properties that meet the aforementioned conditions.

6. Analyze your Financial Situation

Investing requires capital. There is no other way to do it. Either you have enough funds to invest in a real estate project or you request financing.

It is important to know how far you can go into debt and control your emotions.

7. Invest in Homes or Projects with High Demand

One of the most common mistakes some real estate investors make is buying a home as if it were their own.

They forget to take into account that they will not be the ones who inhabit the place and look for characteristics that interest them.

Why is it a mistake? They end up with beautiful homes that are not rented and month after month they lose money on maintenance and promotional expenses.

You must invest in apartments, houses, land or projects with high demand. Find out where people want to live.

8. They surround themselves with the best.

This is where the good guys are separated from the greats. If you can put together a team of trusted and knowledgeable professionals who share your passion and are willing to work with you on every deal you make, the game becomes more harmonious. There are plenty of lawyers, real estate agents, architects, and business professionals out there, but it’s your job to identify the ones who will lead you to good business deals and help you become a successful investor.

9. Read read and read!

Big investors gobble up books all year long. The more you learn through reading, the easier decision-making becomes, it’s as simple as that. Take an introspective look and be aware of the areas you need to improve as an investor and get books that make you stronger.

For example, if you have a solid financial background, read more about human behavior and body language, this will do you better in important negotiations.

conclusion

A smart investment is one that meets all your needs as an investor and helps you achieve your goals.

Investing in Real Estate is increasingly within everyone’s reach. Compare your different options and alternatives and grow your money.

Be a smart real estate investor: analyze, compare, research, assess and diversify

Always go with experts and companies with a track record to back it up. Always put your money in the hands of reliable companies.

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