Realty & Reality

Real estate investments are only beneficial if you hold them for at least three to five years. Real estate is not a quick way to make money. After understanding the cycles of ups and downs of real estate, it is time to decide whether you want to remain in the market or exit.

Don’t consider flipping. It means to buy a property and then resell it once its value has increased.

Understanding the micro and macro market cycles is essential. Real estate has its advantages and disadvantages. It is important to know when it is best to exit the property to make a profit. Each industry has its cycle. A business can be at the top or bottom of this cycle. 

Real estate is no different. There are certain periods to make a profit. Buying the property at a low price and then sell it when the prices rise. There is a period when property prices rise rapidly in the real estate cycle. Keep an eye on your investments at this time. Investing in this period can be risky. 

Falling prices are an opportunity to invest.

A successful investor has a deep understanding of the timing of micro and macro markets, which allows him to make attractive investments.

The property cycle in India is usually stable. It rises slowly. Professional investors should get out of the cycle when they have a good price. It is less important to keep a property for a long time after buying it than to purchase a quality property with desirable attributes such as a great location, high construction quality, and transport connectivity.

 it is advisable to keep the investment for at least 3 years to account for capital gains. Consider the income tax implications if you take out a mortgage on your home. Let’s say you decide to sell the property in five years. You would lose the entire income tax benefit you received from principal payments. You will have to tax the exempt principal amount and add it to your income for that year. If you have a principal payment benefit for a home loan, it is recommended that the investment be held for at least five consecutive years.

If applicable, consider prepayment fees on loans. After the National Housing Board Guidelines were introduced, banks no longer charge prepayment fees. Consider rental income earned during the investment period. You should decorate the property before selling it. Also, consider brokerage fees. A property broker usually charges 1 to 2 per cent of the sale consideration.

Three main reasons are there to sell a property

1.  the property may have been was bought as an investment.

2. You may need to upgrade your residential property due to a growing family or a change in your financial situation. You may need to sell your existing residential property. Before making such decisions, you should consider the implications of the income-tax payment and the stamp duty payment.

If you’re selling your property for any of these reasons, you should do so when the market is strong.

3. If a person requires funds for an emergency like illness, marriage or business need, he must immediately sell his property.

These steps will help you get the best price for your property when you sell it.

1. You should vacate the house/flat first. An occupied house is 25 to 40% smaller than an empty house. The purchaser will be able to assess the real space in the house or flat if it is vacant. The buyer may visualize his life in the vacant house, which can help him make a decision quicker. The buyers can visit your house at any time when you offer it for sale. This could compromise your privacy. 

Unscrupulous people may also visit your home. This could put your family and you in danger. You can keep the house empty; give one key to the broker and another key in your possession.

2. Decorating the House: Make sure to decorate it before you sell it. Paint the windows and doors whitewashed. All fittings should be functional and clean. Repair any damage or leakage. It creates a positive impression on buyers. You can maintain the house well to help increase its selling price by between 10 and 20%. But You will need to spend 0.1% to 11% of the cost of your house. You can change the exterior and interior of your house, also replace the flooring and renovate.

3. Make a list of unique selling points and other features. How much rent can you expect? What makes your house so unique? Is it sunny, well-ventilated, and east-facing? Are there any amenities near your house, such as a hospital, park, or market? You are the brand ambassador for your house when you decide to sell it.

4. Always keep a photocopy of the Chain of Documents with you: Buyers should not be allowed to reconsider their decision. You should ensure you have all the documents you need to make sure that everything goes smoothly. You should always have a list of all property documents you have deposited in the bank as security for any loan you take from a bank.

5. Make the Deal More Attractive: Offer the buyer two months to pay all the money. If you can offer a great deal, you may be willing to pay the legal fees.

6. Do not reveal the real reason for selling: The buyer will always be interested to know why you are selling the property. Don’t tell the buyer the real reason behind the sale. You should not tell the buyer if you’re selling due to a financial problem or a cash crunch. He will attempt to negotiate with you and lose the upper hand. Instead, give reasons such as that you would like to buy a larger house or move to another city.

7. Always decide fair value: You must first determine the market rate for your property before you sell it. Ask local brokers for the current market prices of houses in the area. Keep in mind the location of your houses, such as corner plot, park facing, east-facing, and the road size, For example, 30 feet or 60 feet roads. Tell the buyer that you have determined a fair price. Tell the buyer that you will buy the most desirable property, for which the price will increase shortly.

8. Ask the buyer about the arrangement of funds for a deal: Sometimes, property buyers are unwilling to enter into a deal because they have poor CIBIL scores. If you’re selling a property, and the deal is under negotiation, advise the buyer to get his provisional loans approved before the sale. Poor credit history could cause the bank to back out.