Vadodara, the cultural hub of Gujarat holds a unique position as an education centre, residential city and a haven for peace-loving people. Canopied by Banyan trees (where the name Vadodara literally comes from the word Banyan tree), and situated strategically at close proximity to Surat, Mumbai and Ahmedabad, there are many reasons to invest in Vadodara real estate.
Since the realty market in Vadodara is growing at a rapid pace, the capital values are not at the peak levels. This is why investors across India and internationally are investing in Vadodara real estate before the prices escalate further.
1. Research, research research
Vadodara has a very interesting market. When looking for properties to invest in, compare the deals and closely study the pros and cons of each deal. Check the market rates across regions. Find out if the properties have pending taxes or are disputed by any chance.
2. Invest according to the ‘why’s
Work according to the purpose of your real estate investment. If you are investing to rent out the property – invest in simpler, easy accessible properties with replaceable furnishings.
If you intend to resell it at a later date, watch what properties always fetch a premium rate and then invest accordingly.
3. Valuation of the property
Valuation comprises many factors – real estate financing at the time of buying, listing price during sale, investment analysis, insurance and taxation. You can compare the sales of properties with similar features. You can do this both for new and old properties.
4. Speak to an expert
Consult a financial planner or wealth management expert for the ground realities. If you are new to Vadodara, then ensure you speak with well-meaning friends and relatives who can point you in the right direction.
5. Location, location, location
Your neighbourhood matters a lot. Know the pros and cons of investing in each locality and select good neighbourhoods with amenities nearby. This will help attract potential buyers and the price of your property will gain appreciation faster.
Close proximity to schools, colleges, commercial complexes or places of religious worship are often the criteria for selection.
6. Managing properties
There is additional work when you invest in property. As part of your investment portfolio, your money and your responsibility will grow. Learn how to stay organized, manage various properties, repairs and also make a note of the money that goes into the investment on a continuous basis. Keep track of the profits earned and amounts re-invested. This will help you get a clearer understanding of the growth that you have achieved.
7. Vetting tenants
If you are investing to lease or rent out your property, then an important tip is to know who you are renting it out to. Check their background, credit report and other details. It is important to find out if the tenant has a criminal history or a history of loan defaulting.
8. Explore new and upcoming areas
While location is important, it is also possible to invest in emerging property locations that will bear great results in a decade. In Vadodara, some of the up and coming investment areas include New Alkapuri, Tandalja, Bhayli-Vasna, Vadsar road, Ajwa road etc. It also makes sense to invest near industrial zones such as Halol.
Real estate investment is on the rise because of the favourable risk/reward profile. Do your research and choose wisely – Vadodara is growing at a spectacular rate and you will gain handsome returns on your investment.