Once you decide upon the locality and the area to buy property in Zirakpur or to be specific flats in Zirakpur, the argument can be extended to which builder to choose there. Be careful about the builder’s track record, his financial strength, his ability to deliver on time, construction quality and the payment terms, all of this especially in case of a local builder.


Full cheque payment is always preferred which not only ensures fairness and transparency on the builder’s part but also a decent white collared neighborhood. This is one of the most ignored facts yet always in our control, at least in a primary transaction. These aspects shall indeed give you that comforting feeling that probably you are paying a fair value, if not the best price.


After considering all the above, your negotiating ability (not good communication skills) is crucial, which means leveraging the available information and a fair understanding of the points discussed. In a seller’s market, projecting oneself knowledgeable can put you in a stronger position and get the price you want.


Remember that when the upward price momentum prevails, it is generally expected to remain like that as long as there are buyers who are ready to pay that price. Yes, markets do determine the prices but every product has its own intrinsic value – identify it and pay accordingly. Go ahead and be that different customer!

Hope all of this sound practical if you are an end user, but if you are an investor; then one requires doing a deeper analysis beyond these macro factors, unless your investment, has a very promising future. Because when markets fall or correct, the impact is proportionate and only properties with good intrinsic value can withstand the downward slide, retain their value and recover faster.


What is worrisome at this point is the fear of excessive investment flows and the speculative element in prices which is driving the genuine buyer away from the market. This is likely to result in a drop in resale transactions and eventual drop in yields.


A time horizon of 3 to 5 years is desirable at this point for better capital appreciation while rental yields can be good depending on the area as people might prefer to rent now than buy. Rising interest rates is another factor which might curtail the buying momentum.


Real estate price movements are unlike share price movements since there is a lead lag effect in case of the former. Stock prices tend to gyrate in shorter periods as they are influenced by various factors while real estate prices generally maintain one direction in relatively longer time periods.


With the sharp rise over the last one year, prices have crossed earlier peaks in some cases and it is quite likely that the higher prices will need to settle down for some time leading to stagnation. Simple economics tells us that rising prices always result in slowing demand. That does not mean they will fall from here and hence the above discussed points become even more critical.



The general advice given to an investor is to wait and watch.


Budget of the buyer and the pricing of the property are the most important things and realty experts say that the investor must analyze his holding capacity before entering the market.


Generally a retail investor for shares and mutual funds do not have control over the market but an investor in property rules the situation.       The most astonishing thing is that shares and mutual funds cannot be raised through loans but as explained earlier in this booklet a home loan can be raised anytime.


A second house can become a life long pension if one rents it out.


Proposed economic drivers, efficient transportation, excellent amenities and a host of upcoming international business events are likely to make a property a good investment destination, provide one is willing to be patient. Therefore, vicinity of a property plays a major role in its overall value.


Location is one of the driving factors affecting the price of an investment property in Zirakpur – and the rental returns you can expect from it. To avoid buying an investment that could potentially run at a loss, make certain that there is a real demand for rental property in your chosen area. Research the market well and choose an area where rental demand outstrips supply.


Remember, investing in property should be a business decision. You may choose to manage the property yourself, or choose to use an agent. Whatever path you take, it’s important to treat your investment like a business – banking, tax, maintenance etc. all need to be managed and recorded accurately. As with any business, it’s smart to build strong relationships with your Solicitor, Adviser, Broker or Lender, and Real Estate Agent.


Look for features that will be attractive to tenants at property in Zirakpur. For instance, if considering an apartment, does it have a balcony? Does the unit you’re interested in have an internal laundry? A double garage? You may not find tenants immediately, or there may be periods when you are between tenancies. Make sure you allow for at least a two or three week period in each year when you won’t receive any rental income.


If you’re borrowing money to buy an investment property, you’ll be making loan repayments to the bank. If you’re renting the property out, you’ll receive income from the property in the form of rent from your tenants. If the interest part of your loan repayments (plus any other investment expenses) is more than the income you receive from rent, you can claim the difference as a tax deduction. This is known as ‘negative gearing’. It may reduce your taxable income and thus save you money on tax. Put simply, negative gearing of property lets you (under current law) claim losses and tax deductions when you expect to make profits in the future. This means that if you negatively gear your property, these items can be 100 percent tax deductible (including mortgage repayments, property taxes, and insurance, maintenance and rental fees). As tax rules are subject to change, we recommend that you discuss your personal taxation position with your Tax Adviser.