Having your own house provides a sense of security and an elevated social status. However, home buyers have to tackle a long list of issues. Real estate as an investment can be very tricky if you do not know what you are doing.

Why to Invest?

The low volatility in real estate prices lends stability to the investment. The prices rise gradually over time, compared with other asset classes, which may see wide fluctuations. It also provides a steady stream of income through rentals, even during a lull in the economy. Even if you do not intend to live in the house, you can partly finance your mortgage payments and other expenses through the rental income. Besides, it provides several tax benefits by allowing you to claim tax deduction on repayment of principal and interest on the housing loan, as well as repairs and maintenance. Most importantly, it provides the much-needed diversification to your portfolio. But keep in mind that there are different considerations when you buy real estate for investment and for self use.

Where to Begin?

Investing in real estate isn't a cakewalk. Finding a good property with decent amenities in a good neighbourhood, which is close to your place of work, school and markets is a huge challenge. However, a little homework can help you zero in on a good deal.

You first need to work out a budget to finance the down payment for the house and subsequent EMI payments. Remember that you will have to meet the EMI obligation month after month. Also, factor in the expenses you are likely to incur after the purchase. These expenses are anything but ancillary. Painting, furnishing and maintenance can add up to a huge sum. Shopping for a home loan is another aspect requiring homework for first-time home buyers. Lenders will have marginal differences in interest rate, processing fees, margin money, prepayment options, etc. Go through the fine print carefully before signing on the dotted line. First-time buyers should opt for a ready-for-possession property. There are too many hassles involved in one under construction.

Top Rules for Real Estate
Move fast.
Think before finalising the deal, but once you zero in on an option, move quickly. Good properties get snapped up fast and waiting may result in diasappointment.

Work out your budget.
Secure your finances before the deal. Avoid taking on an EMI obligation that takes up more than 40% of your monthly income.

Take professional help.
Don't get carried away by tall claims and leave nothing to chance. Whether it is inspecting the property or arranging proper documentation, take the help of professionals.