How to invest in Real Estate with a capital of just 10lacs?
While investing in real estate is known to generate good returns, the large initial investment deters many people from benefiting from it. Today, buying a house in a city can set you back by lakhs of rupees. With high inflation rates and ever-increasing costs of living, many people cannot save up enough funds to buy the house they want. Today, we are going to talk about some smart ways of making areal estate investmentwith a corpus of just Rs.10 lakhs.
Let’s assume that you have managed to save Rs.10 lakhs and are looking for investment options that can help you build wealth over time without taking high risks. While there are many investment options available, real estate continues to remain one of the most trusted ones for wealth generation. The next question in your mind would be – how can I invest in a real estate projectwith just Rs.10 lakhs? We might have some answers for you. Read on to know more.
Tip 1: Opt for a home loan
Property prices are different in different cities. Also, within a city, prices can vary according to the locality, developer, construction style, and age. While we cannot list property prices in all cities in this article, if you have a capital of Rs.10 lakhs, then you should be able to manage the down payment on a house and manage the rest by availing of a home loan.
Home loans are usually offered for around 20-30 years. This allows you to repay the loan in affordable EMIs. Also, typically, financial institutions offer around 80-85% of the property value as a home loan and you are required to pay the rest. So, if you are looking to buy a property worth Rs.60 lakhs and are getting a loan of Rs.50 lakhs, then you can use your saved capital towards the down payment for the property. You can opt for a tenure that allows you to get an installment that doesn’t strain your finances.
Tip 2: Invest jointly
If you cannot afford to buy a property alone, then you can partner with an individual or a group of people for the investment. This will allow you to buy an expensive property and reap the benefits of a higher rental income and price appreciation. However, it is important to choose the partners carefully and complete the required paperwork diligently to avoid any disputes or problems later.
So, if you have Rs.10 lakhs and can partner with four other individuals with Rs.10 lakhs each, then you can buy a property worth Rs.50 lakhs. The rent can be divided between all five partners based on pre-agreed terms. Also, when the property is sold the sale amount can be divided accordingly too.
Tip 3: Buy an under-construction property
When a builder launches a commercial or residential project, he offers people to invest in it while it is being constructed. In such cases, you are expected to pay the builder in installments based on the speed with which the builder is completing it. Hence, you get time to arrange funds for every installment and do not feel the pressure of paying the entire amount upfront.
So, if you have a capital of Rs.10 lakhs, then you can look for an under-construction property that requires the initial down payment of an amount less than Rs.10 lakhs and subsequent installments that can be managed by you.
Tip 4: Look for smaller properties
Real estate properties are usually priced per square foot. This means that bigger properties cost more than smaller ones. Hence, if you have just Rs.10 lakhs as corpus, then you can look at studio apartments or one-room-kitchen apartments as they would be cheaper than 2-3 BHK homes. Also, if the price of these properties is more than Rs.10 lakhs, then smaller homes will result in a smaller home loan compared to bigger apartments.
While many people tend to stay away from investing in real estate because they do not have enough capital, the above-mentioned tips can help you buy one even if you have just Rs.10 lakhs as corpus. If you are investing for a good rental income and a strong potential for price appreciation, then you need to look at properties with high-quality construction and good connectivity among other features. In Pune, many builders offer different types of commercial and residential properties across the city. Among these names, Brahmacorp has evolved as a trusted name in high-quality construction and apartments designed for comfortable living. If you are looking for apartments in Pune, then you can consider properties like THE COLLECTION and BRAMHACORP SMART at New Kalyani Nagar, Pune. You can also look at the pre-leased residential homes at BRAMHACORP TOWNHOUSE at Balewadi or the newly-launched AUGUST TOWERS at New Kalyani Nagar. If commercial projects interest you, then the BRAMHACORP BUSINESS PARK at New Kalyani Nagar or BOULEVARD TOWERS at Pune Camp can be considered to build wealth over the long term with a commercial real estate investment.