In one of our previous newsletter, We specifically talked about what makes a Location Ideal for Real Estate Investment. We took the case study of Goa and Dubai.
We undertook what makes each of these locations unique.
But how do we really use and leverage this USP to make smart Investments? That’s what we will discuss today.
Let’s say that you finalized your location.
1. What you need to do next after you find the USP is to align your deal with the USP of the city.
For eg:
Buy properties in Goa that
- allow short-term rentals,
- are near the beach, and
- have amenities like pools.
Why?
Ask yourself, what does Goa Market look like?
These would be:
- People who come for short-term stays
- They want to enjoy the beaches and would mainly be coming to enjoy.
- So your property needs to match this requirement.
So what would you do if you were buying a property in Bangalore?
- Buy properties in Bangalore which is close to an office city center, easy to sell.
- Or buy properties at Satellite Cities. Because people here are ones who are working a 9-5 and looking for a good place to stay at a good proximity.
Similarly, buy properties in Dubai,
- If you plan to implement tax-saving plays.
- Or want to make use of their Golden Visa Opportunities.
You get the idea.
Now a good question to ask is
Is it possible for properties in large cities (Hyderabad, Bangalore, Delhi, Mumbai) to stagnate?
Yes.
This is possible if new satellite cities (upcoming centers) are being built in the proximity of that city.
India is a low-income country as of now.
As the nation grows, this will move from low - middle - rich class over the long term.
So your thesis should aim for the next class to sell your property.
2. Assess the risk factors
For e.g. If Goa drops its Airbnb rental business, what will happen?
If Satellite cities are built near Delhi, what will happen?
Once you have a clear thesis in mind, that’s when you move ahead.
And to create this thesis. You need to take time and learn.
Source
- Akshat Shrivastava 30 days Newsletter.
