5 New Year Resolutions For Investors

As is true of property markets across the world, 2020 was an eventful year for India's real estate sector. The lacklustre performance of the sector in the after of the coronavirus pandemic was only expected. While remarkable policy changes have been implemented in the past to bring transparency and make the property more affordable in the recent times, home sales showed some improvement in the last quarter of the calendar year 2020, showing a 68% year-on-year spike. However, the way thigs are shaping up, it is certain that real estate investors should brace themselves for surprises.

If you plan to park your money in real estate in the year 2021, you must also keep certain things in mind for your investment to turn fruitful.

Keep it all clean

All stakeholders in the real estate sector now have to follow a rulebook i.e. the provisions of the Real Estate (Regulation & Development), 2016. Under the provisions of the law, any kind of goof-ups may land you in trouble. It would be the best to keep all property-related transactions clean and go by the book. 

Expect only the due

Gone are the days when investing in a property was considered the safest bet to multiply your money in no time. According to PropTiger DataLabs figures, property prices across major cities of the country have seen no appreciation in the past couple of years. If you are investing in property expecting windfalls in the short term, you will face disappointment.

Focus towards emerging markets

With work from home becoming the mainstay, Tier-II and Tier-III cities are becoming the hotbeds of investment activity. So, if you are looking to make money in the real estate sector, you will have to learn to shift your focus towards these emerging markets.

Learn to be ready for changes

Several policy changes in the past years have affected India's real estate sector remarkably. The Narendra Modi government's decision to demonetise currency notes of higher denominations, for instance, impacted the manner in which property transactions were done in India. As the Prime Minister gears up to rid the sector of all its ills, more changes might be on their way. So, buckle up for some surprises.

Wait and watch

Real estate investment is a long-term commitment.  Getting jittery about day-to-day changes and their impact on real estate might not be a good idea. Those who lost their sleep over the demonetisation drive, for instance, did not really have a reason to do so. Land happens to be one of the safest asset class, and its benefits are to be reaped in the long-term.