The biggest drawback of investing in property is that the requirement of lump-sum money is far higher than in any other form of investment. However, that can be overcome with some planning wherein home loans can be taken and/or investment can be made in property under construction so that the outflow of money is in small construction-linked steps which is much easier to handle. Another drawback is that, if due care is not exercised initially while choosing the property, the loss suffered may be very heavy – far heavier than in any other investment avenue.
GOLDEN RULES OF PROPERTY INVESTMENT
There are three Golden rules to follow when investing in property:-
Rule 1: Location!
Rule 2: Location!
Rule 3: Location!
If this most important rule is taken care of by a thorough research in the beginning, most of the later disappointments are already taken care of. Other minor rules to watch out for are:-
Clear land title.
Reasonable cost of acquisition as per the prevalent market price.
Real (and not imaginary) reasons why rates should increase in future.
Availability of buyers for your property in foreseeable future when you plan to sell it.