33.32 How do you choose the right Real Estate Investment as per your Goals?

So, let's take a deeper look at different subcategories of properties:

1. A Basic Vanilla Flat

For example, I bought a flat as I see multipurpose use with it:

This would typically be a distressed sale. This should be the only reason to buy a plain property.
Price matters a lot. We will cover this in depth soon.

2. High Rise - High-Density Developments

Now, as the project gets older. The price even depreciates. Avoid such Developments,
This is simply because the supply of such properties can be increased very quickly.


3. Low Rise - Low-Density Developments

4. Unique Properties

These are some of the things to focus on:

This will depend on the area you are looking to buy in. The point is to create and leverage your USP.
Learn to buy properties that meet your goal.

  1. Consumption Property
    1. Maximum Comfort
    2. Buy in places that you intend to live
  2. Yield Based Property
    1. Aim for a rental yield of >4%
    2. Focus on Short Term Rentals to achieve higher yields.
    3. Don't expect such properties in Tier 1 cities like Bangalore, Delhi, and Mumbai.
    4. What are Yield Properties?
      1. Short Term Rentals are allowed forever
      2. Buy at a tourist spot
      3. Big Developers should not affect you if they come to that spot
      4. Figure out management and operating expenses
  3. Investment Grade Property
    1. The focus is on property return
  4. Tax Saving Properties
    1. For eg: Investing in Dubai for a Golden Visa and Tax Saving
    2. Even if your property doesn't give great returns, your goal might be to save on taxes.

Understand why you are considering Real Estate, and what you expect from your investment.
This will make you 2x more likely to make a good choice as per your needs.


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