Top 10 Best Real Estate Investment Places In Chennai
- Chennai has expanded far & wide with new land additions.
- An investor should be very careful in making investments in the lands.
- The focus on long-term yields while investing in Real Estate very essential.
- The condition of the market & demands plays a significant role in the real estate business.
- The return on investment is a major factor in determining the profitability of real estate investment.
- Generally, the return on investment is very high in commercial properties.
- If we are very particular about stable income, then rental properties are highly profitable.
- proper care has to be taken to avoid wrong investments
Essential Features Of The Best Real Estate Investment
● Good Location
● Purchase Price
● Small Flaws
● Low Maintenance Cost & Care
● Good Rent-to-price Ratio
● Low Vacancy Rates
● Long-term Appeal
● Fast Turnaround From Purchase To Renting
● Multiple Industry-dependent Nature.
1. Good Location
- Good location mainly depends on the purpose of purchase & category to be targeted
- The purpose of purchase is long-term yields & very good return on investments.
- Each target category has its own preferences.
- Families prefer the proximity to schools, Colleges, essentials & also nearby leisure facilities.
- The working category prefers the proximity to workplaces & connectivity, mobility & transport facilities.
- The location should have growth potential of solid infrastructure with proper backup of planned improvements.
- The location should be ideal for healthy local businesses & should cater to the need of high educational facilities.
- The location should have good public transportation systems.
- The location should have clearly marked access to public streets/roads/pathways.
- If the location is situated with a front directly on the street/road, it’s better.
- The rapidly developing infrastructure, robust connectivity, and the growth of IT/ITes establishment are highly appreciable.
2. Purchase Price
- The money matters the most. The property’s true value is the intrinsic value.
- The yield & growth potential determines the true value of a property.
- A good deal is a deal where the purchase price is lesser than the property’s intrinsic value.
3. Small Flaws
- There is no doubt that flawless properties are always good.
- But at the same time, we can accept small flaws to garner high-level profit in the future.
- The care should be taken to see that the small flaws must be a fairly quick fix.
- The flaws must require very less quick fix time consuming with less money expenditure.
- It is a good way to quickly fix & makes less attractive to be more attractive & improve the property value.
4. Low Maintenace Cost & Care
The low maintenance cost & care gives great relief to investors.
5. A Good Rent-to -Price Ratio
- The right rent-to-price ratio can help you to figure out how to offer the right rent.
- The renters have the tendency to weigh up the pros & cons of renting Vs buying.
- Generally, rent of 5 % or less of the property purchase price is good.
- If it exceeds 5 %, we may end up charging too much & automatically it will lower the demand for the property.