Investing in real estate is a sound proposition as it is not subject to market fluctuations and usually stays steady. However, even with being a tangible asset and one of the most stable investment options, investment in real estate also comes with its fair share of risks. Being mindful of these risks and dangers can help you make a risk-free investment and avoid the pitfalls. With the increasing lucrativeness of the real estate market, a number of developers have entered the fray. While not all are shady, there are quite a large number of shady players. With incidents of builders taking the booking amount of one project and investing it in acquiring more land and not in the project itself, thereby resulting in a cash flow crisis happening pretty frequently, it is up to the buyer to ensure that the builder they are putting their faith is in reputable and trustworthy. Another thing to watch for is to be aware of land appreciation. Real estate appreciation is directly dependent on the location of the project. Projects near proposed infrastructure projects will appreciate fast and these are the markets you should look at. However, you have to be cautious too as in case the infrastructure project is delayed, your property will not appreciate at the rate you expected. Another way to mitigate risk in your real estate investment is to properly study the property you are looking to buy. Are there title disputes? Is there any legal issue associated with the property? Is the property RERA approved? Getting legal clearance on the property before you invest is a sure-fire way to ensure a risk-free investment and no legal hassles later, which can take years to clear. The best way, of course, to ensure a risk-free investment is to buy property from a reputed builder who will ensure that all legalities are met and deliver you the residence at the promised time.
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