Things to watch out while finding cheap homes for investing in Hyderabad Real Estate!
As a homebuyer and an investor, some of us fall prey to low-priced deals that look lucrative on the face of it! However, with some care and vigilance, you can make your investment in Hyderabad Real Estate quite rewarding!
A good short-term investment in real estate in Hyderabad could look like selling your ‘invested property’ for over 30% Return On Investment (ROI) in about 2 years.
However, the challenge is finding the right property that is reasonably priced, and has a clear potential to grow! In Hyderabad, it is common to see prices varying within the same locality, which is why finding the right deal can be challenging. Here, pricing alone cannot be the sole criteria for an investor to buy a property!
For instance, in the Sainikpuri locality, ‘Builder A’ may sell a 2200 sft exclusive-floor apartment (builder-floor) for Rs 1 crore, whereas ‘Builder B’ may sell a similar unit for Rs 1.2 crore. Which one to pick? In this example, an investor can make the mistake of investing in a sub-standard property with ‘Builder A’, and NOT get healthy returns after 2 years of waiting! The first question we need to ask ourselves is, “Why are there cheaper homes for sale within the same locality in Hyderabad? Let us look at some reasons which can save you from losing Lacs of rupees in buying your next investment in Hyderabad real estate. This way you can avoid an investment disaster.
1. Things to be careful about investing in Hyderabad real estate!
A. A Cheap Home May Have Hidden Problems
- If you find no evident reason why the price quoted by a builder is low, there may be hidden problems
- These reasons/problems could include unprofessional rigour on construction, sub-standard cement or other materials, lack of rigour during soil-testing, not using the appropriate/required materials, cutting corners in all the raw materials, poor quality bricks or other items in specifications
- Other reasons could be the possibility of factors like new construction or unfavourable changes likely to happen nearby. For instance, a home right next to garbage collection centres of municipalities, or a public structure which will result in untimely noise, traffic, thefts, pollution etc.
- You need to identify the problems and check if they will cost you more if you want to avoid them
- Some problems like ‘places of noise’ are hard to eliminate and are a nuisance
- The apartment or home may still be a good deal, but if the builder is hiding them, there could be more issues being hidden!
- Be sure not to go for a home where you may face hidden surprises that turn your investment in real estate bad!
- Conduct a thorough inspection, and NOT be in a hurry to grab a low-priced deal in Hyderabad in any locality without thorough checks
B. A new home that needs spending more money later, OR has poor/unattractive amenities
- Sometimes you get a home or an apartment where you are required to invest in improving the quality by putting more money before you can sell it. Is it worth it?
- For instance, if the flooring, accessories in bathroom/kitchen, finishing on walls etc. is so bad that you will need to spend another Rs 10 lacs before you can sell it, then this investment may not be worth it!
- Sometimes, you have critical elements like ‘power back-up’ missing, or poor quality corridors, bad quality lifts, poorly organised parking areas etc. All these elements make your home difficult to sell at a later date
C. Neighbourhood related issues
- Sometimes within a locality, you find attractive deals in areas that are notorious due to bad neighbourhood
- Even if you get a steal deal, are they really a good buy? Generally NOT, especially if the neighbourhood is a put-off for ‘peace-loving gentry’!
- A bad neighbourhood can cause the property value of your home to decline
2. Good deals are definitely possible!
- Some builders simply need to sell faster to liquidate their inventory. This can result in a fantastic deal if all other factors are favourable
- If the builder wants to sell quickly for other harmless reasons, and you learn this information, you could make a low offer!
- Exclusive or luxury homes sometimes are very reasonable. Plus, they grow faster with demand in the locality rising, especially, PRICES OF PLOT. For instance, in the Sainikpuri area, you could get an Exclusive floor (builder floor) for approximately Rs 1.2 crore in 2022, which could get you over 30% appreciation in 2 years (in 2024 or 2025) subject to prevailing market conditions!
So, an investor can earn really healthy returns with a keen eye for the right investment options in Hyderabad real estate!
“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”– Franklin D. Roosevelt
To know more about “Investing In Real Estate Projects: Exploring Investment Opportunities For A Healthy Return!”. Click here!