Real estate is an asset that almost always appreciates, and hence, it makes sense to invest in it. However, as with any type of investment, there are always a few risks associated with it. Thrissur is an emerging city in Kerala, and a good choice if you want to purchase a home for use or as investment. For those who are looking to get good returns, here are some of the top real estate investment strategies in Thrissur.
Rental Income
This is one of the most popular ways of earning income, and many families that live abroad, often do it. They purchase a flat in Thrissur and give it out on rent so that they get a steady monthly income. It’s a passive income, and you start getting immediate returns.
Hold and Sell
One of the biggest benefits of real estate investment in Thrissur is the tendency of the property to appreciate. You can purchase an apartment, hold it for a while and wait for the property to appreciate before you sell it for a hefty gain.
Wholesaling
This refers to entering into a contract to purchase an undervalued property and immediately assigning it to a buyer whom you have identified beforehand. This way, you can make a profit without actually first spending money yourself.
Flipping
This strategy is about finding undervalued properties, renovating them, and then selling them for a profit. It involves a certain capital outlay, so you must be prepared to spend some money initially.
REIT
These are another form of passive real estate investment which allow you to invest in a basket of real estate properties that have a promising return on investment. You can trade them, and exit the market at any time. Your risk is spread here, somewhat similar to mutual funds.
Purchasing under-construction apartments
When the apartment is still being constructed, it is usually sold at a lower price than a finished one, as it gives the builder some funds in advance, and an assurance of sale. You can sell it as soon as construction is completed also, or wait a bit longer, and sell for a handsome profit.
BRRRR
This stands for Buy, Rehabilitate, Rent, Refinance, Repeat. This real-estate investment strategy refers to the process of purchasing an undervalued property or if the owner is making a distress sale, renovating it to increase its appeal, and renting it out. It is then refinanced to avail more funds, which are then used to purchase more such properties, and the cycle continues. It provides a steady income stream.
Home Stay
In this method, you buy a house and live with your family in it, occupying some rooms; but you let out one or more rooms for tenants who pay you. This method is less risky than renting as you can monitor how the tenants are using your property.
REIG
Real estate investment groups are similar to REITs but is unorganized, and has less formality. It’s a higher risk, higher return method of real estate investment. Several investors get together, pooling their funds to purchase properties and manage them, renting them out to earn income.
Private Lending
If you have the funds, and you trust the builder – based on personal association or track record, you can lend funds to them to develop real estate, on interest. If they are unable to obtain loans from banks for some reason, builders often turn to private lenders.
Conclusion
Investing in real estate is very lucrative and can reap you rich rewards, provided you do your homework and are diligent in choosing the right property. You have to start with the builder, and then the location. The reasons why you should invest in Thrissur are plenty. It’s the cultural capital of Kerala and a major financial hub. It is emerging as one of the most important cities in the state, and there is a heavy demand for real estate. Varma Homes is a reputed builder with many high-quality projects all over Kerala. Varma Spectrum offers premium 2 and 3 BHK flats in Poochatty, a tranquil and beautiful suburb of Thrissur. Call us now to know more.
FAQs
- What are the top real estate investment strategies in Thrissur?
Answer: Rent out properties, buy and hold for appreciation, wholesale, flip properties, invest in REITs, buy under-construction properties, use the BRRRR strategy, start a home stay, join a real estate investment group, or engage in private lending.
- How can I earn passive income in Thrissur?
Answer: Earn passive income through rental properties, REITs, or real estate investment groups.
- What is the BRRRR method?
Answer: Buy undervalued properties, rehabilitate them, rent them out, refinance, and repeat the process to grow your real estate portfolio in Thrissur.
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