The easy to buy real estate rules and guarantee of timely possession have increased the interest of home buyers in the Indian property market. As a result, people look to buy property as an investment option. But, availing homeloan for two properties at a same time can create financial troubles. Therefore, people prefer to hire tenants for the second property instead of keeping it vacant at any particular time.
In fact, hiring tenants for the second property has one major benefit of earning fixed rental income. Therefore, you must consider the below-mentioned points while buying the second property as the tenants look for various specifications before choosing a property to live on rent.
Things to Remember While buying property for Fixed Rental Income:
Mostly, people prefer to hire renting property in the locality of their standard and thus you must buy property while keeping in mind the type of tenants you want to hire. Like if you want to hire nuclear family, a joint family or singles. This is essential to consider as it affects your buying budget and the size of residential unit you are going to buy. The area plays a pivotal role in the home buying process as the property prices depend upon the living standard of the particular area.
- Proximity to Educational Institutions
People like to stay in the areas which are near to school, college, hospital, and shopping arena. So, you must review the location of the property before buying it. The lesser distance between these places increase the chances of getting tenants at regular intervals as it makes life easy, congestion and hassle-free.
- Must Have Smooth Connectivity
Your property must be centrally-located and should be at a walking distance from the road, metro station and other public convenience stops. This makes life easy as people have to manage their time between personal and professional life.
- Project’s Construction Quality
Home buying is a life-long investment hence you must check the kind of material that the realtor is using while construction of your property. Also, this adds to the value of a property and helps you get better rental income. So, have a quality check of the property prior buying it as the residential structure needs to be durable.
- Rent Rate
You can hire a tenant by choice but can’t ask for the random amount as rent per month. In fact, one must take notice of the current market rate before finalizing the monthly rental income.
Keep these five points in mind when you step into the property market to buy property for investment purpose.