How To Buy An Apartment Complex in Thrissur

Posted onJul 13, 2024

Apartment living offers several benefits and comforts, and hence is becoming more popular by the day. An apartment complex offers amenities that an individual homeowner may not be able to afford, like swimming pool, gym, landscaped gardens etc. and people long to live in such residential spaces. You can consider buying an apartment complex as your real estate investment strategies in Thrissur. First let’s look at the advantages of purchasing an entire apartment complex: 

• You can diversify your investment portfolio, get a steady flow of income, a consistent cash flow, and lower your risk of vacant units.
• You can scale your real estate holdings by acquiring more units
• Your per-unit cost will come down and increase overall profitability, as the operational cost gets divided among several units.
• Enjoy tax benefits due to depreciation, property taxes, housing loan interests etc. and boost profits further.

How To Buy An Apartment Complex

As the city is rapidly developing, you can get numerous benefits of real estate investment in Thrissur. However, when it comes to purchasing an apartment complex, there are many aspects to consider, and you have to do your due diligence. Here are some guidelines:

Types of Apartment Buildings

Make sure the complex you’re considering is aligned with your goals. There are four main types of apartment buildings:

• Class A - new structure with amenities like gyms, swimming pool, A/V room etc
• Class B - 10-20 years old, with a few well maintained amenities
• Class C - 20-30 years old and most probably without amenities, and in need of major renovations
• Class D - over 30 years old and in need of extensive renovations or redevelopment

Choose the Market

Ensure that the market you choose is booming, like Thrissur right now, for example. Buying an apartment complex in a declining market can cause you to lose money.

Set Your Budget

Once you decide the type of complex and market, you have to fix your budget. How much are you wiling to invest? While you can get loans, you will certainly need to put down some cash of your own. You may also need to spend on renovations depending on what type of apartment complex you are buying.

Get Pre-Approval

The next step is to get a pre-approved housing loan, and this is a very critical step. Ensure that you have all your documents ready, like detailed income documents, ID proof, ITR, bank statements etc. Speak to a few lenders, compare the ROI and terms, and only then make your decision.

Look for Properties

Search for potential properties online, and compare amenities, localities etc. and make offers. You can test the market before you finalize the deal. Check units properly, and ensure the plumbing, wiring, construction work etc. is solid through physical inspections. Check that the builder has followed all regulations and has all the necessary permits and licences.

Maintenance and Tenant History

It makes sense to do a little research and check the history of occupancy to get an idea of the income potential. Enquire if the management of the property is outsourced to professional services or the residents’ society handles it directly.

Seal the Deal

Once you find the property that ticks all your boxes, approach your lender to finalize your loan and sign the contract. Ensure that the property has a clear title and it has a good appraisal report. When everything looks good, you can close the deal and begin to rent out the property to start earning a stable income.

Conclusion

We can give you several reasons why you should invest in Thrissur. If you’re considering purchasing an apartment complex in the city, look no further than Varma Homes. Every project features robust construction, top-notch amenities, and are located in the best residential areas. Varma Homes adheres to RERA norms, government regulations, and believes in transparent dealings. Check out their premium apartment complex in Poochatty.

FAQs

What are the key benefits of buying an apartment complex in Thrissur?

A: Purchasing an apartment complex in Thrissur offers several advantages, including a steady flow of income, diversification of your investment portfolio, and the potential for tax benefits due to depreciation and housing loan interests. Additionally, owning multiple units can lower per-unit costs and increase overall profitability, making it a smart real estate investment.

How do I choose the right type of apartment complex to buy in Thrissur?

A: When choosing an apartment complex in Thrissur, consider your investment goals and budget. There are four main types of apartment buildings: Class A (new with amenities), Class B (10-20 years old with some amenities), Class C (20-30 years old needing renovations), and Class D (over 30 years old requiring extensive work). Ensure the market is thriving and aligns with your objectives.

What steps should I follow to buy an apartment complex in Thrissur?

A: To buy an apartment complex in Thrissur, start by setting your budget and getting pre-approval for a housing loan. Search for properties online, compare amenities, and conduct thorough inspections. Check maintenance and tenant history, ensure all regulations are followed, and verify that the property has a clear title. Finally, finalize your loan and sign the contract to seal the deal.