Buying a property in Bangalore, Chennai, Delhi, Kolkata or any other metropolitan is majorly done for two different reasons: (1) residential purpose, (2) investment or to use as rental property. If a property is being purchased for residential purchase, there isn’t much to say other than
- Choose a safe locality,
- Look for properties with higher value appreciation rate,
- Find a good home loan.
On the contrary, if a property is being purchased as a part of investment or for rental income purpose, there are a few things we would suggest to keep in mind to maximize the yield.
Keep an eye on the interiors: Put yourself in position of a potential tenant, you would obviously like and pay a higher rent for a property with attractive interiors. For instance, I know people who bought 2BHK and 3BHKs in Godrej Eternity apartments and charge a very high rental every month. So, look for apartments with best-in-class interiors.
Location of property: Location is of utmost significance. The closer your property is from downtown, chances of earning higher rental increases. For instance, if you have a property in Koramangala – the commercial hub of Bangalore, you can earn higher rental income from this property compared to your properties in other areas.
Amenities: Personally speaking, no one would mind paying a few extra bucks as rent for a property which comes with in-premises gymnasium or a swimming pool. These amenities turn a house into a luxury house, and paying an additional 1000 or 2000 bucks is completely worth it.
Bottom line: Before buying a house, ensure that you look up your tax deductions, loans, EMI installments, savings fund and all the other financial assets.
Additional Read: Things to Check When Buying a House in Bangalore