What kind of Real Estate investment can get you higher return? – Residential Investment.

By Abhay Harish Shah , Realty Quarter

Investing in the right property is one of the most important factors for any individual. There are many factors which can hike your investment money (in the property). Some of the factors are Development plan given by the government, Surroundings of the area, Government Policies, Property Tax etc.

There are many cases where an individual’s investment haven’t received any appreciation for the property for more than 10 years, and some cases also include where a property cost has gained 20% hike in just 3 years. In order to receive a decent return in terms of rent, a person must keep the following points mentioned below:

1) Low investment, higher the rental yield: The ongoing demand for a perfect house will always be in trend. So, if you have invested in a budgeted property, you are likely to get higher yields based on market demand. This the case where people like to book their flats at the time of the under-construction stage.

2) Cities: Populated cities like Mumbai, Delhi etc will attract higher rent. Because of more demand and limited available flats, the price of the property in the cities like Kolkata, Bangalore, Mumbai, Hyderabad etc will have more return compared to other cities.

3) Affordable Houses: Statistics suggests that the yield returned in the affordable houses is higher compared to the mid-level or luxury houses. Generally, most of the people who want to live in a rented house will have some budget, which cannot fit the cost of Luxury house, so it is advisable to invest in Affordable houses only.

4) Future Development: As mentioned above, before investing in a property a person must check the cost of property tax, Government policies and most importantly future development plan mentioned by the government. It is always profitable to invest in an area where the government is planning to bring metro or some other major development plans.