If you are an investor, looking to buy an apartment in Kolkata, it is advisable to weigh the pros against all the cons, before entering the real estate market. Investing in real estate is a big decision and a huge investment with associated risks just like any other investment.
Below are some of the things to consider before investing in real estate.
• Property tax
Like in all metropolitan cities, in Kolkata too, the Property Tax is very high. This is often one of the major deterrents for those looking to buy a flat in Kolkata. So, it is always advisable to consider the amount that has to be paid to the Government as tax when allocating a budget for your real estate investments in Kolkata. Many prefer buying their second or third property in cities where the Property Tax is relatively lower. Then again, the return on such real estate investments is relatively less.
• Legal essentials
Real estate investments come with a lot of legal requirements. Sometimes, in addition to the Government, the local Municipal Corporation may also have a legal say. Therefore, it is very important for the investor to understand these laws and ensure the property is purchased in compliance with all regulations. It is best to consult a legal expert and get all the doubts clarified before proceeding.
Also, for those considering investing in a second or third property, it is essential to learn about all applicable rules, income taxes’ requisites and duly pay the necessary tax to avoid penalties.
• Maintenance cost
In cities like Kolkata, there has been a rapid rise in the number of high-rises around the outskirts. Buying property in such relatively underdeveloped areas of a city may fetch the investors high returns in the long run when the area develops, say in 5-10 years’ time. However, immediate resale of such properties may not fetch good profit. Therefore, such properties should be bought with the intention of holding on to them until the area develops and earns the investor high returns. For this, one has to take into account the property maintenance costs for the period. One must prepare an estimate of all costs before going ahead with such long term investments.
Once the investor has done thorough research, understood legalities and rightly estimated finances and costs involved, it is safe to go ahead with real estate investments. This kind of investment is considered by far the safest and is believed to bring good returns in the long run.
Summary: The real estate market in certain cities in India, like Kolkata, has seen a rapid growth in the last few years with more and more people looking to invest in their dream properties. However, it is important to consider the factors mentioned before proceeding with real estate investments.
Author Bio: One of the leading players in the real estate market, Ideal Group takes pride in its rich portfolio of world-class ongoing and upcoming residential projects in Kolkata. The Group has truly embodied their tagline "Pillars of Trust" and won the trust of countless customers.