Investing in real estate is a time-honoured method of achieving financial success. Throughout the ages, investment property has helped a lot of people make a great deal of money – sometimes quickly, sometimes over the long term. Those who invest for the short term are generally known as property speculators, and they play a dangerous game. Long term property investment is for forward thinkers who have an investment horizon of at least five years.
The objective of a long-term property investor is to buy a property at a low price and sell it at a higher price. To be successful at this, one needs to know what is going to happen in a certain location over the next few years. You will need to invest in a growing location, not an established one. This is especially true if you are a middle-class person living off a middle-class income. There are two reasons for this.
First of all, properties in established locations cost a lot of money. At the same time, their long-term investment value is lower. The reason for this lies in the nature of the real estate market. The costly (or ‘prime’) areas gained their value over a certain period of time, but what goes up will eventually go down. Real estate gains value because of new infrastructure projects, shopping centres, public transport facilities, etc.
If you look at central locations of Pune such as Bund Garden Road, KoregaonPark, Kothrud, Deccan Gymkhana and Laxmi Road, you will see that nothing more can happen there. These areas are saturated. In many of them, residents are facing a lot of problems because of overcrowding, lack of parking, open spaces, playgrounds for their kids, pollution and traffic clogging. Even with the best of intentions, the city planning authorities cannot do anything to make life better for them – there is simply no space left.
Though the property rates in these areas of Pune are high, they cannot rise further because the future has nothing to offer there. Long-term property investment in Pune means buying real estate in an area while it is on the rise – not when it is in saturation or decline mode. Buying investment property means buying it where people are going, not where they have already been for generations.
A hot property market is one where there are upcoming changes in the infrastructure, and where homebuyers are headed. Infrastructure can include things like major highway construction and shopping and entertainment facilities. Look for areas that have a lot of employment options, because people always want to live close to where they work.
Also keep your eyes open for areas where large corporations are relocating or already exist and have room to expand. When this happens, the real estate market in that area will boom due to demand for housing and small businesses. Business is one of the most reliable drivers for real estate prices.
In terms of the Pune property market, Pimpri Chinchwad has all the above ingredients of a hot property investment destination. This is the reason why more and more Pune developers are now concentrating on projects in this boom area. If you want to know more about this thriving property investment location, you are welcome to contact us to learn more about the various lucrative residential property investment options in Pradhikaran and other areas of Pimpri-Chinchwad available.