Investing in the India property market and your options for building an investment portfolio using property.

Unlike buying a home to live in, an investment property is usually bought with the goal of making money (usually via rent). So, things that might be important when looking to buy a home (such as proximity to your workplace) might not be as important in an investment property. There are many reasons why investing in property continues to be a popular choice and is often seen as one of the best ways to invest money in India. However, mistakes can be expensive, so it’s always a good idea to think about why you’re investing in the first place, and whether it fits with your set of circumstances.

Tips for buying an investment property

Research and planning can play a big part in the success of your property investment. Here are some tips to help you get the ball rolling.

Be clear on your goals

It’s a good idea to consider the realities of the property investment alongside its potential benefits. Think about why you’re investing in the first place, and whether it fits with your particular set of circumstances – this will also help to guide your next steps. For example, you’ll need to make sure you can cover your loan repayments without greatly affecting your lifestyle, and consider if you’re comfortable with the risks involved, like a possible drop in market value or interest rates increasing significantly.

Do your research

Doing your research first will help you clarify your options. And there’s a lot to consider: from whether you’re looking for an apartment or a house, to suitable suburbs and how much you can afford to borrow with an investment loan (see point 3).

It’s also a good idea to decide whether you’re buying to make an income now, or as a longer-term investment. Then research the property’s potential for capital growth, rental income and ongoing costs.

Set a budget within your means

Lenders will generally ask for a minimum deposit of between 10% and 20%. You’ll also need enough upfront cash for things such as stamp duty, legal and conveyancing fees, insurances, maintenance, and interest on borrowings.

Also consider how the cost of your borrowings could impact your investment. Many Indian have variable interest rate loans, which means their borrowing costs can fluctuate. It is worth considering how changing interest rates could impact your investment, and looking at the options for fixed and split interest rate loans.

Check your credit history

Make sure the details in the credit history report are correct. It’s a good idea to do this before you start inspecting properties. .

Set your timeframe

Setting yourself a timeframe for saving a deposit and then purchasing a property will help keep you accountable to your goal and gives you something to work towards. However, make sure you keep in mind market conditions and have a flexible mindset in case things change.

Decide who’ll manage the property 

If you’re time poor or live a long way from your investment property, you might want to appoint a property manager or real estate agent. Keep in mind that this service will incur property management fees.

So If you'd like to speak to one of our friendly Real Estate Investment Firm or Real estate agents about houses and property for Investment in India, contact Indien office today. Alternatively, you can simply visit our Real Estate page and search for properties and homes for Invest in India .