5 Tips For Property Investors In Their 20s

Getting started at a young age is the right way to go about real estate investments. Very few people invest in property in their early 20s, but this might be a very good time to buy property. Payoffs for such investment can come quicker and handier much earlier in life.

Here are some smart ways for young investors to invest in properties in India.

1-Take risks with the location: Is there a new township coming up that shows good promise? Consider it as an investment option. As a youngster having fewer responsibilities like a family to support, you can afford to take a few risks. Hunt for properties which could get attractive after five to 10 years, like those located away from the city but close to areas where transportation projects like airports, flyovers or metros are announced. As connectivity improves in your investments could multiply. For a first time home buyer, property is an investment more than a utility. Go for those long-gestation projects which have good prospects.

2-Conduct extensive research: There are only three secrets behind good real estate investments — location, location and location. Finding a good property which will become an investment engine in the future needs a lot of research - much of which is readily available on a number of real estate websites in India. You also need to apply stock-market like principles before you find a good property. Once you get an idea about the location that you want to invest in, search for a builder having a good reputation of completing projects on time. There is a chance that a builder might lose interest in such a far-reaching investment option.

3-Bargain well: If you are going with an off-beat location that few people seem to be interested in, there is every chance that you might have an upper hand at the bargaining table. Make sure you get a very good deal out of the investment, so as to ensure that your returns will be good enough in the future. Communicate to the builder that your investment is on the riskier side and you would like to work-in the risks of your investment.

4-Make a small investment: Do not go in for a big property which costs a lot, even if you think you have stumbled on an investment gold mine. A large investment might burden you a lot and can eat into your finances making you skimp on everything else. The investment should also leave you flexible enough to make other financial decisions like insurance, among others.

5-Bring in a partner: There is every chance that you might not be able to bring in all the equity required to get a loan. So, sell your investment idea to a family member, a friend or a colleague who is looking at similar investment. Make sure that the partner has a good credit score, decent income and a steady job. Communicate the risks and the rewards that your investment might bring. Take the advice of your partner and involve him or her from the time of property hunting to loan seeking.

Katya Bellamkonda is a Mumbai-based writer. She has spent the last nine years reporting on many sectors in India including energy, infrastructure, technology and telecom.