The future opportunities for development in Kochi are huge, going by the current developments with regard to infrastructure, making this the perfect time to invest in real estate. Kochi is the most cosmopolitan city in Kerala, and is the financial capital too. If you have a higher amount of disposable funds, have eligibility for a larger loan, and are willing to do something different, think of purchasing an entire building or apartment complex.
What are the Benefits of Purchasing an Apartment Complex as Real Estate Investment Strategies in Kochi?
- Diversification of your investment portfolio, ensuring a stable income, and mitigating risk
- Expansion and scaling up of real estate holdings with additional unit acquisition
- Reduction of per-unit cost by spreading operational and maintenance costs over a number of units
- Reduction of tax liability due to depreciation, property tax, and housing loan interest
Things to Consider Before Investing in an Apartment Complex
Apartment Building Types
There are various types of apartment buildings, and it’s important to know which one to purchase:
- Class A – a new building with top-notch amenities like A/V room, landscaped gardens, gym, swimming pool, etc
- Class B – 10–20 years old, with basic amenities in decent condition
- Class C – 20-30 years old, not many amenities and in need of major renovations
- Class D – very old buildings which cannot be used without extensive renovation or redevelopment
Check out the Market
It’s critical that you choose the right market; meaning, it has to be a rising market. One of the
benefits of living in Kochi is that the real estate market is booming. When you invest in a market that is booming, you can expect to make excellent returns in the coming years. The opposite will happen if you choose a market in decline.
Budget your Investment
Having a budget helps you know your limits, so that you don’t chase unachievable properties. You should not put all your cash in hand into this one investment, but rather take out a housing loan. Paying a higher down payment, you can reduce loan amount, but it all depends on your financial status.
Loan Pre-Approval
Getting pre-approved for financing is a good idea so that once you’ve made your decision, things can move along fast. Submit all essential documents like ITR, income proof, credit score, bank statements etc. to a few lenders to get pre-approval from them.
Go Property Hunting
Search online for suitable properties, and check out the residential area, builder reputation, amenities, building age, etc. Inspect the building, individual units, and amenities to ensure that everything is well maintained and in good order. Also check that all permissions were taken, and norms adhered to.
Tenancy Record
What was the occupancy rate? What type of tenants did the building have? Check out these to get an idea of what you can hope to earn, how smoothly things will go, and what additional services you may need to provide.
Finalize
If any shortlisted property fulfils all the above conditions, you can compare lenders and approach one to avail of the loan. Sign the sale agreement, take possession, and prepare to rent out the apartments.
Conclusion
You can earn a very high monthly income from renting out a whole apartment complex as opposed to a few flats or homes, and if you have the capacity, this is one avenue you must consider. Varma Homes has several buildings in some of the best localities in Kochi, and the buildings are new, featuring world-class amenities. The construction is solid, built with superior materials, premium fittings and fixtures, and adhere to all government and RERA norms. Come and check out their buildings with premium 2 and 3 BHK apartments in Kochi.
Also read: Real estate investment strategies in Kochi
FAQs
What are the benefits of investing in an apartment complex in Kochi?
Investing in an apartment complex in Kochi can significantly diversify your investment portfolio, ensuring a stable and potentially high income while spreading and mitigating risk. Additionally, it allows you to scale up your real estate holdings by acquiring more units, thus reducing the per-unit cost of operations and maintenance. Furthermore, you can benefit from tax reductions due to depreciation, property tax deductions, and housing loan interest.
2. How should I budget for purchasing an apartment complex in Kochi?
Budgeting for an apartment complex requires careful financial planning. Determine your financial limits to avoid chasing unachievable properties. Instead of using all your available cash, consider taking out a housing loan. A higher down payment can reduce your loan amount, but this depends on your financial situation. Always ensure you have a solid financial plan before making a substantial investment.
3. What should I look for when hunting for a property in Kochi?
When searching for a property in Kochi, start by researching online for suitable options. Evaluate the residential area, the reputation of the builder, available amenities, and the building’s age. Inspect the property thoroughly to ensure it is well-maintained and in good order. Verify that all necessary permissions were obtained and all regulatory norms were followed. This due diligence will help you make a well-informed decision.
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