Are you thinking of investing in a real estate project but are unable to reckon if it’s worth your investment? Each project gives enough hints to weigh up the success of the project. If you observe carefully, you’ll be able to find and pick up those hints. This article will discuss the 5 things that make a Real Estate Project Sound and Investment Worthy.
What are those 5 things that make a Real Estate Project a promising one? Read on to learn!
Table of Contents
Developer’s Track Record
Before investing in a project, you must learn about the developer of the project. A developer that has a history of delivering projects timely is likely to deliver this project on time as well.
Moreover, a developer with an established reputation would strive to sustain their fame in the market; thus, the company would deploy their professional strategies to keep the development going and complete the project within the stipulated time.
The Location of a real estate society is another one of the most important factors that play a role in making or breaking a project’s fate.
A project that is located in a location that is easily accessible from nearby landmarks or populated areas or the nearest city (if the project is located in the suburbs) such as located by a highway or a link, it would attract the attention of many with a high probability of attracting plentiful investors and potential residents.
Besides location, if the owner has legally acquired the land, it makes the project a safe investment.
Legal Status & Approvals
A project can only be successful if it has been approved by all the relevant authorities. Otherwise, the project’s development would be inconsistent and the members would have to wait for possession.
A real estate project can be considered a sound investment if it has acquired the following approvals:
- NOC (No Objection Certificate): The project needs to attain NOC by the relevant development authority such as CDA, RDA, LDA, and so on.
Related: How to check if a society is legal
- No Litigation Issues: The project has acquired its land and has no ongoing litigation problems. If a project has disputed land or has yet to acquire its land, it can face legal issues in the future affecting the price appreciation and delayed development.
- Quality Certificate (ISO 9001:2008): A developer that has certification for Quality Certificate (ISO 9001:2008), this confirms that the company is capable of fulfilling its promises of efficient work and accomplishing the tasks on time. ((ISO 9001:2008) ensures customer focus and customer satisfaction).
ISO 9001:2008 is only given to companies that have proved their capability for efficient management systems. A project being developed by a certified company would be a safe investment for investors.
What does the Project offer?
An investor has a right to know about what the project is offering he is going to invest in. You must seek information about the project such as
- What amenities would be offered in the society?
- After how long will be basic infrastructure completed?
- What is the payment schedule?
- When would be possession offered?
- Would there be compensation if possession is delayed?
Pace of Development
If the development work is progressing at the rate it was promised and there are no unnecessary breaks in the development work. This hints at the transparency of the developer and the owner of the society.
The development work can be carried out seamlessly if the society has acquired clearance from all the relevant authorities.
Moreover, fast development also means that the project will be delivered within the promised time. Investors who wish to construct homes there would find their neighborhood comfortable due to the availability of all basic amenities.
Such societies where development work continues at a steady pace are seen to have higher demand and offer high returns on investment. Thus, investors with the sole aim of earning profit should invest in residential projects with fast development.
An investor can identify an investment-worthy residential society if he looks for a few distinct things about that project. You must ask the developer or the owner or real estate agent about the project about those possible things that can provide foresight about the project (5 of these things are discussed above in this article that make a Real Estate Project Sound and Investment Worthy).