During the recent years, Gurgaon has been an approving destination for real estate investments. The industrial growth and infrastructural changes are the major factors responsible for this progress. One of the busiest cities in NCR, Gurgaon today has become a hub for multinational companies, reputed banks and several other prestigious firms. With the advent of these companies, people are moving to this city for better job opportunities. Even professionals like engineers, doctors, chartered accountants and lawyers are interested in buying office spaces in Gurgaon.
Despite all the favorable aspects, there is a little risk involved in real estate investments. The lower the risk, the more are the chances of profit from the investment. Here are two crucial factors that need to be considered while investing in Gurgaon real estate. Let us have a look at them.
Property Valuation: Valuation is one of the most important concerns while purchasing a real estate property in Gurgaon. There are several important aspects which rely on valuation. Some of those are:
- Property taxation
- Insurance premium
- Overall analysis of the investment
- Listing price at the time of sale
- Financing at the time of purchase
With all these factors dependent on it, property valuation holds significant importance. Here are some common methodologies used for the valuation of property.
- Analyzing the recent sale of similar properties
- Estimating the difference between total cost and depreciation
- Evaluating the income expected to be earned by selling or renting the property
Purpose of the Investment and Expectations from It: The real estate in Gurgaon offers many lucrative options to the investors. However, it would be impractical to blindly rely on this fact, especially with high-value investments. Ignoring the risk just because it is minimal, may yield undesirable results. Such results may cause financial troubles, particularly when the investment involves mortgages.
Remember these points while making the investment.
- If you are an end user, you should focus on value appreciation, and utilize the property in the best possible manner.
- If you are planning to put the property on a lease, you need to consider value appreciation for long term.
- If you are going to sell the property after a short period of time, you can go for properties under construction and sell them after they are completed. Many real estate companies in Gurgaon implement this strategy.
- If you are intending to sell the property after a long period of time, the amount you get after selling can be used for future concerns such as for your child’s education, and as your retirement plans.