Tips for Buying a Profitable Investment Property in Pune
The major reasons for buying new flats in emerging localities in Pune are the possibility to upgrade to bigger apartments at affordable prices, acquiring a second home close to the existing one and also the upcoming second generation buying or investing in these localities.
The good news for new home buyers is that they can expect a healthy 12 to 20 percent annual appreciation on buying a new flat in Pune, depending upon the location, product quality, delivery time frame in these emerging localities like Wagholi, Bakori, Marunje Road, Punavale, Gahunje, Bhugaon, Pirangut, Pisoli, Undri and Mohammedwadi of Pune.
Unlike end users, investors are also focused on the best time to exit, hence a horizon of 6 to 9 years needs to be maintained for investments done today. That said, returns are subjective and will depend on factors like project, area, location, brand etc. Please note that there is no thumb rule for how long one should stay invested, with the optimal horizon always being a function of specific project, entry cost and annual appreciation achieved. However, a horizon of 7 to 10 years from project launch is advisable.
Always remember before buying a new property, in all cases, buyers must do a thorough due diligence before investing in any emerging locations.
The following points need to be checked are:
Due diligence of the certified copies of registered title deed of the land parcel on which the property is to be built, to establish a clear title of the land.
Ensure that all approvals are in place and received for the development of the land.
Based on the survey numbers mentioned in the title deed, buyers must check the land use of the land parcel has been approved by the development authorities’ master plan.