What Should You Prefer: Investing Vs. End-Use?

Buying real estate is a measure that a person is self competent enough and is successfully moving towards his goals and objectives. A property, particularly in one’s name, makes up for upgraded social status. 

Confusion shouldn’t exist when it comes to putting your lifelong savings into the realty market. Whenever you buy a property is it either for self-use or for investment purposes. But many fail to understand the fine line of difference between the two. For instance, while the location is the biggest factor that influences the decision while buying a home for end-use, one could probably compromise on it a little when it comes to investment.

Let’s look at these important parameters closely.

Location

End Users

For those planning to own a home for shifting into it sooner or later, location plays the most important role. A person who would like to use the home will consider location at the first. Make sure that the locality is conveniently situated and one that can cater to all your needs.

Close access to facilities such as schools, hospitals and malls and should be well-connected to other parts of the city.

Investors

For those buying a property purely for an investment purpose, thorough research of the location is of also utmost importance. As per the research, the newly emerging localities such as those located on the fringes of the city or suburbs may help you earn a healthy return on investment (ROI). So, for the investment, you should opt for a location that has witnessed some development and price appreciation but has not reached its peak yet.

On the other hand, if you intend to earn rental yield from your investment, you need to consider factors such as proximity to social infrastructure and the livability index of the area.

Also see: How To Buy A Home That Delivers Long-Term Return?

Construction Status

End Users

Construction Status is another measure for end-users as a ready to move property would cost higher than an under-construction. When planning to buy a home it is very crucial as it determines your monthly outflow in the form of EMIs, if you are availing of a home loan.

Investors

If you are looking for short term returns, then it makes sense to invest at the pre-launch or launch stage. So, in case you want to exit when the property is mid-way through construction and invest the capital thus gained in another property.

See Also: Know Everything About Down Payment And How It Works?

Infrastructure

End Users

 If you are buying property for end-use, be sure that the location boasts a well-developed infrastructure. A wide and good road network, renowned schools, hospitals and recreational zones in the vicinity will enhance the lifestyle. Also, look for important connectivity links such as airport, metro, railway station and bus stops to ensure easy and convenient living.

Investors

At times, when it comes to investment there are a lot of suburban localities and peripheral areas that might not have the best of the social and physical infrastructures present. However, one must see whether the locality is included in the main city’s master plan or not.

Thus, make a wise decision and choose the best that reaps out great benefits.

Read Also: Acre To Gunta And Other Conversions In Real Estate