Over a period of time millennials from urban and rural area in India have created a larger segment in buying or investing in real estate. It has been noticed that millennials are more willing to rely on agent recommendations and are less likely to do their own self research before buying a house. Here are some facts to consider for a millennial before purchasing a property.
1. Working on your credit score:
Just like investment, credit score is not something that can multiply overnight. There are some steps that one should take to gain a good credit score rating from banks or lenders, but not everyone is aware about how the credit score works. An individual paying the complete loan amount on time in return receives a solid credit score with many beneficial advantages. A higher credit score might help in applying for a loan while purchasing a house and will also give you access to preferred rates or fees.
2. Saving plays a vital role:
There are plenty of ways to get finances for your real estate investment, but a proof of consistent saving will help. Successful investors start saving a certain amount every month to eventually achieve most of the targets. A millennial need to identify his/her goals and pen them down to further knowing how much money one needs to put towards achieving most of the goals.
3. Networking is the key.
The first step towards investing is doing complete self-research on the different investment and create a set of question which needs further clarification from an expert. One should engage with experts from the real estate sector who can definitely help with the required knowledge of the industry and will also help you contact the right person at the right time. A visit to real estate expo or meet-ups that are open to commoners is a best way to find numerous contact/network that can be beneficial in the future.
4. Follow your head
A property may look perfect to a person in the beginning but getting an advice from a knowledgeable person is always a good option. After all, investments in real estate never happen through instincts, emotions or following your heart—it’s all about doing the maths right.
5. Study the market
It’s always better for an individual to study the respective market or field well before getting into it, the same goes with a millennial who is in search of a home for the first time. A millennial need to do his/her homework about the real estate market i.e visiting the property site, a complete knowledge about the developer, price range of every house, possession date, approx booking amount etc, This will help one clear his/her doubts in person. Apart from this, knowledge about the benefits of a consumer can gain with the new rules or scheme’s introduced by the government and the ongoing news about the real estate sector is always beneficial in many ways.
[This is an authored article by Amit Wadhwani, Managing Director of Sai Estate Consultants. All views, opinions and expressions are personal and limited to the author.]