Investing in real estate is a popular way to make money for many investors. Some people buy property for their living. Some people buy property not for living but for investing. They buy the property at lower prices and sell it at higher prices when the property value gets appreciated. Buying a property is not an easy task for small and medium level investors. It requires a lot of money to invest in a property. We will find out the ways how to invest in real estate online in India with little money.
Let us look into the various ways to invest in real estate.
# Buying a property in a Good Location:
Buying a property in a good location and sell the property when its value gets appreciated. It is a very common form of investing. When you see the opportunity of lower property prices in a proper location buy it for long-term investing. You evaluate the locational advantage and other facilities and check the prices and its prospect to increase in future. Remember that the continuously growing area can fetch a handsome return when you sell the property. The chance of value appreciation is very high on these properties.
# Renting a Property:
If you have a plan of not living in the property and buying for investing renting may be a good option for you. There are localities in every city where the population is rising and demand for rented property is soaring. Moreover, rent the property will full furnishings such as Air conditioners, TV, Sofa etc. to get high rental value from the property.
# Investing through Online Portal:
You can invest flexible amounts through the online portals in real estate such as Smartowner. This investment from individuals is used to purchase real estate at a deep discount in the early stages of the project and then exiting the investment with profit after two to three years at an advanced stage of the project. This crowdfunding model presents a flexible source of capital to developers also. This mode of investing in real estate has low entry barrier and you can start with few lakhs of rupees
Changes in Real Estate Industry:
Indian Real estate sector has seen many changes from last two years. First is the demonetization in November 2016. Then, Real Estate Regulatory Act (RERA) and implementation of Goods and services tax (GST) respectively.
The demonetization has very minimal or less impact on the real estate sector. As the most of the properties are bought on loan there is very less involvement of cash, which can impact the real estate sector. Though there was negative sentiment about real estate market soon after demonetization, now it is over and the property market has gone to the situation where it was before demonetization.
The RERA act has the most significant impact on real estate market. Many real estate developers raised the money during the pre-launch or soft launch in the name of booking or advance from customers. This money is used to finance the project to a great extent. The RERA has changed the mechanism and it states that developers cannot demand more as an advance from the customers. Hence the developers now need to look into the banks, NBFCs and other institutions where from they can get the working capital to finance their project. As a result, the real estate sector is going to be more and more organized.
The government of India has introduced a comprehensive tax, GST on 1st July 2017 in place of all taxes throughout the entire country. Certainly, it has minimized the complicacy which was before pre GST period. The input tax credit provision of GST make the real estate prices more affordable to customers. Hence the demand for real estate is most likely to be increased in near future obviously.
Also Read: GST Impact on Home Buyers
How to become a Real Estate Investor Online:
Investment in real estate is very difficult in India. The process of purchasing and selling a property involves legal uncertainty, the hassle of searching a good property and time of purchasing and selling. Moreover, it needs large cash to invest in a property. These problems can be overcome by investing through online with the help of a real estate crowdfunding company.
The best advantage of this model is that you can invest flexible amounts instead of a large sum for a single property. You can diversify your real estate investment with different projects across the different cities.
As I said earlier the searching for a good and hassle-free property is a really cumbersome activity for a retail investor. It requires a lot of time and effort. Sometimes you need to take help of professionals to evaluate the property. The online real estate investment company is taking this responsibility for you. They ensure the location advantage of the property and legal parameters are fine. They also check the past performance of the builders or developers.
Moreover, the real estate professionals are there to assist the investors. They will help you to choose the right time to sell the property and how you can diversify your real estate portfolio across the cities. They may even help you to provide rental income in the course of your ownership.
There are various real estate property search portals by which you just search and select property. After that your real searches for the property starts. You need to verify the property and go through a wide range of tasks before actually purchasing or investing in a property. In the same way, selling is also a big burden for many investors. The online real estate crowdfunding companies are making your job easy when you are interested in investing in real estate. In this way, the investors, as well as developers, are coming together to help each other in a win-win situation.
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