With the volatility of other assets getting highlighted during the global pandemic, it is clear that real estate is the best sector to invest in. However, as the world is locked indoors and all business is brought to a standstill, the question arises—how should you best invest in property? Here, we try to give you some answers.
Rules to Follow While Investing in Real Estate During COVID-19
- A really smart move to invest in properties in Jodhpur and other parts of the country would be to purchase assets at below replacement cost. What this means is that when you are buying a property, the investment should be lower than the money it would take to build the same property afresh. This would make sure that rents remain stable and do not go down because building a new property would involve a greater cost burden.
- It would be a matter of great inconvenience for the investors to get tricked into a fraud right now as making legal moves would be difficult in the situation of a pandemic. Therefore, it is best to purchase only completed lease assets from trusted builders and developers in Jaipur.
- You should try to invest in leases that have a gradual slope of yearly escalations so that it does not create a great financial burden for the tenants at once but allows them to accommodate slowly to the monetary situation.
- Try to find leases that have longer lock-ins and on which tenants have spent on furnishings. This results in tenants—ranging from those of luxury flats in Jaipur to those of simple residential flats in Jodhpur—sticking to the property for a long time.
- Keep in mind the areas that are the most and the least affected by the pandemic. Moreover, it would be a better idea to invest in apartments in Jaipur than to invest in hotels or warehouses.
These are some of the steps every investor in real estate must follow at the present moment because it is important to make a really smart purchase in order to gain a large profit. Better safe now than sorry later.