33.30 How do you build an Investment Thesis for your Property?

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

Why?
Ask yourself, what does Goa Market look like?
These would be:

So what would you do if you were buying a property in Bangalore?

Similarly, buy properties in Dubai,

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.

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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

Thoughts 🤔 by Soumendra Kumar Sahoo is licensed under CC BY 4.0