Things To Consider Before You Jump Into Property Markets

There are hardly any real estate markets in the world which are not seeing an upsurge. This happens to be the time when property prices in major global cities are touching record high. This makes us common man think — would it not be wonderful to somehow invest in property and see our investments growing by leaps and bounds? The idea is so enticing that most of us leave no stone unturned to materialise it. We take every penny out of our personal coffers after a thorough search, we use our credibility to borrow all we can from banks, and we venture into this ever-alluring asset class to get rich. All fair points, but there are certain things to consider before you take the giant leap.

What if the value does not rise as you expected?

Possibilities of a bubble burst loom over property markets where prices have touch extreme levels.  The 2016 edition of the UBS Global Real Estate Bubble Index reveals that Vancouver, London, Stockholm, Sydney and Munich are the top cities that face this risk.  “A change in macroeconomic momentum, a shift in investor sentiment or a major supply increase could trigger a rapid decline in house prices. Investors in overvalued markets should not expect real price appreciation in the medium to long run,” the summary report said. Close home, property prices across major Indian cities have not shown much growth in the past four years, PropTiger DataLabs trends show.

Am I ignoring my priorities to gain profits?

The charm of property markets notwithstanding, a decision to buy a home must be taken only keeping into consideration your personal requirements. A property might be coming cheap in say, Noida, and you might also be in a position to afford it. However, you have an unsteady job. You are not sure how far you are going to stay in this city. In a scenario such as this, how wise would it be for you to book a flat? In case you leave the city for another job, will you be able to keep an eye on your property? What if you are forced to quickly sell it at a cheaper price? Once again, property markets may not be the place to make quick money.

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Do I know the market well?

This is the problem most of us face. We come to property markets looking for a place that we will be able to call our home. Also, existing is the fact that this investment is going to grow in future, no matter what. These points are sufficient for us to pick our bags and come out for home shopping. This often leads to not doing proper research about property markets? Have been made ourselves of all the legal and financial jargons that could be mind-boggling and make us look clueless in front of others? Do we know what we really want from our future property? There are so many questions we need to find answers for before we jump into property market investment.