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End User v/s Investment: What Works Best?

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As developments are on the rise in the real estate industry, there are investors from both the country as well as abroad who are purchasing several properties for various purposes

Recently, there have been various changes in the real estate industry of the country and the number of investors is on the rise. But some of them are undecided if they must opt for the personal use of these properties, simply put it on rent for individuals or organisations, or use it for some other purpose which can assure them a good return of investment.

In several urban areas of the country, various infrastructural developments are also contributing to the rise in the value of the property. While various things need to be considered before deciding to live in the property or use it for some other purpose, the knowledge of how a property can be beneficial for those investing in it has to be understood.

RealtyNXT lists the various points that need to be considered before investors decide if they must become end-users or simply use it as an additional source of income.

1. Location

Location is one of the core things that one needs to think about before investing in a property. If one wants to be the end-user of the property, then the location of the property should be such that the area has the accessibility to various types of amenities like local stores, hospitals, educational institutions and restaurants so that they can live comfortably with their family.

For those looking to invest it for other purposes, one can opt to buy a property in a realty hotspot so that they can expect a good return of investment in the coming years.

2. Market

When buying a property, one of the most important things to know about is the condition of the market growth in the area where the property is situated. In the case of an end-user, it is better if the area where the property is purchased has a good market with good economic and commercial activities. This is because such an area increases the value of the property faster and provides a lot of opportunities for employment which is very necessary for those who will be living in that area.

In the case of an investor, the area in which the property is located may not have a developed economic or commercial industry. However, before purchasing the property, the investor should make sure that he has done ample research to find out if the area will promise him a good market growth in the coming years so that the value of the property appreciates.

3.  Interiors

After purchasing a property, planning how to decorate the interior of the house is one of the most important tasks that need to be accomplished. However, it depends on how a person wants to use the house.

As an end-user, the homebuyer needs to plan the interiors of the property in a way that suits his lifestyle. If he is willing to live with his family, then all the designs need to be such that the house caters to the needs and demands of all the people in the family. This may include planning a prayer room, guest room, an open kitchen, dining area or a kid’s playroom.

As an investor, the interior of the property will vary according to the way he plans to make use of it. If he is planning to make the property a serviced apartment, then the interiors will be basic and neutral so that people from different parts of the world or country who visit the place on a vacation or a business trip can use the apartment. If the investor wants to rent it out to a family, then the apartment needs to be designed in a way that it suits the requirements of a family. Thus for different users, the property’s interior changes accordingly.

4. Construction Status

As an end-user, most home buyers will prefer to buy a home whose construction status is already completed or is going to be completed within a short period. This is because, as most of them may be paying the EMIs for their property, they will be content to live in the house that they have purchased as soon as possible. Also, it will help them save a lot of money in case any of these home buyers are currently living on rent and are also paying the EMI for their new property.

As an investor who would not be living in the property, they can purchase it in an under-construction stage or even before the construction starts. As most real estate developers offer some great discount when they launch a project, an investor can purchase a property at such a moment and avail these offers. As an investor, most of them can afford to wait until the project is ready for possession. 

5. Neighbourhood

According to the use, selecting the neighbourhood is also an important consideration for purchasing a property.

As an end-user, most homebuyers will prefer to buy the property with a neighbourhood that provides facilities that suits their requirements. Proximity to community centres or recreational areas is some of the things that must be looked out for. Also, a secured neighbourhood with very low rates of crime or an area that will have other like-minded people will offer a more comfortable stay to the end-users.

On the other hand, as an investor, if the property will be used as corporate housing, then the neighbourhood should be such that offices and commercials hubs are nearby so that residents of this property can easily travel to their work. If the property will be used as a serviced apartment, then proximity to shopping areas or other tourist places will be beneficial so that guests living in the apartment will find it convenient to live in the property and at the same time enjoy their stay.

Thus it is very important that while purchasing a property, the homebuyer must decide if he wants to be the end-user or an investor and then choose a property with a neighbourhood that will complement its use. 

ALSO READ: What Makes Your Property Valuable?

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