How To Buy An Apartment Complex in Trivandrum

Posted onJul 15, 2024

If you’re looking for tips on real estate investment strategies in Trivandrum, consider purchasing an apartment complex. You can earn a steady monthly income by renting out the units in the complex. Thanks to the benefits of living in luxury apartments in Trivandrum like centralized maintenance, gyms, swimming pools, party halls etc., they are very popular. 

Why Should You Buy an Apartment Complex?

• It enables portfolio diversification, consistent cash flow, steady income, and risk mitigation
• By acquiring additional units, you can expand your holdings and scale your business
• With operational costs being spread over several units, reduce your per-unit cost and boost profitability
• Depreciation, interest on housing loans and property taxes can help you reduce your overall tax liability

Buying An Apartment Complex

Trivandrum real estate is booming with the current and future opportunities for development in Trivandrum. Kazhakkoottam IT Park, the presence of top-notch research and educational institutes, exceptional healthcare facilities, and other infrastructure development work is fuelling the demand for real estate in the city.

What Should You Consider When Buying an Apartment Complex?

Before you delve into the purchase, there are certain things you should be aware of, and things you need to understand:

Types of Apartment Buildings

There are many types of apartment buildings. Choose the one that is fit with your goals.

• Class A - new building featuring amenities like swimming pool, party hall, gym, etc
• Class B - 10–20 years old, with a couple of amenities reasonably well-maintained
• Class C - 20-30 years in age, and usually lacking amenities; it may need major renovations
• Class D - very old buildings which have to be completely redeveloped or need large-scale renovations

Selecting the Market

Check the market - is it rising or declining? Trivandrum real estate is in a boom, and it makes perfect sense to invest here. If you invest in a market that’s slowing down, you may be in trouble.

Make a Budget

You must have a clear idea of what you want to spend; whether it’s cash you have or a loan, you need to decide the upper limit of your investment, and stick to it. Consider how much you will to actually purchase, and also for other expenses like registration, renovations, etc.

Loan Pre-Approval

Approach a few lenders to get pre-approved for housing loans. Take all necessary documentation like income proof, ITR, bank statements, credit score, and so on. You can compare terms and interest rates and attempt to get pre-approved by a couple of lenders.

Look Up Properties

The best place to start is online. Check out the localities, amenities, the builder’s reputation, age of the building and more. Physically inspect the apartments to make sure everything is in good condition. Verify whether the builder has adhered to regulations and taken all the required permits and that the title is clear. 

Tenant History

Take a look at the records and see if the building has a good occupancy percentage so that you will know how much earning potential it has. You can also research about the kind of tenants, like young families, senior citizens, etc. This will help you decide the kind of property management services you’ll need to provide.

Finalize

When you’re satisfied that a certain property matches all the conditions in your mind, re-approach your lender, and finalize the loan. Close the deal with the owner of the building, and began preparing to rent out the apartments as soon as possible to start earning from your investment.

Conclusion

Investing in real estate can be very lucrative provided you do your due diligence. Trivandrum’s real estate market is expected to rise for the coming future, and it is wise to invest now. Buying an apartment complex as an investment is not a very common move; if you have the risk appetite, the funds, and the eligibility for higher loan amounts, it will reap rich rewards. Varma Homes projects in Trivandrum are mostly new buildings with top-notch amenities, and adhere to all RERA and government norms.

FAQs

Why is buying a home in Kochi at a young age financially beneficial?

Buying a home in Kochi at a young age offers numerous financial benefits, including lower initial investment costs, potential property appreciation, tax savings, and rental income opportunities. These factors contribute to significant long-term savings and financial stability.

How does the growth of luxury flats in Kochi impact real estate investments?

The growth of luxury flats in Kochi positively impacts real estate investments by increasing property values and demand. Investing in a luxury flat can lead to substantial appreciation over time, providing young buyers with higher returns on their investment.

What are the tax benefits of buying a home in Kochi for young buyers?

Young homebuyers in Kochi can enjoy tax benefits such as deductions on home loan interest and principal repayment under Sections 24 and 80C of the Income Tax Act. These deductions reduce taxable income, resulting in significant tax savings.