Real Estate Investing  in Kochi: 10 Best Strategies For Beginners And Pros

Posted onMar 03, 2024

Real estate is one of the best investment options as there are multiple ways in which one can earn from real estate. The value of real estate usually always increases, unless in extreme adverse economic situations. Of course, as with any investment, there are a few risks too.  Here, we will cover the mistakes to avoid when investing in real estate in Kochi:

Rental Income

If you’re looking for steady and regular income, you can rent out your apartment in Kochi. The demand for flats in Kochi is increasing, but many don’t want to buy outright for various reasons. Rental income is passive and immediate.

Hold and Sell

By waiting for a while for the property to appreciate, you can make a big profit on your investment. Holding and selling is one of the smart real estate investment strategies in Kochi.

Flipping

You can buy derelict or undervalued property, spend some money to renovate it and make it look appealing, and then sell it; this strategy is called flipping. However, you will have some expense at the outset, so make sure you have the funds.

Wholesaling

Under wholesaling, you identify an undervalued property and identify a buyer who wants it; you enter into a contract with the owner and immediately assign it to the buyer for a higher price.

REIT

Real estate investment trusts are companies that own, operate, or finance properties that generate income. They are similar to mutual funds in that they aggregate the capital of several investors. The funds are used to invest in a bunch of promising properties. They provide passive income to investors who can trade them publicly and leave the market whenever they want. Risk is lower here as it is spread across a few properties.

Purchasing under-construction apartments

Buying an apartment while it is still in the construction stage has many benefits. You can get discounts from the buyer, and have minor changes made in the wiring or layout etc. If you sell this flat once it is complete, you can get a much higher price for it.

BRRRR

Buy, Rehabilitate, Rent, Refinance, Repeat is a lucrative strategy, but it requires some financial outlay in the beginning. Here, you purchase a distressed property, renovate it, make it attractive, rent it out, and then refinance it for more funds, which are used to buy more distressed properties - the cycle is repeated continuously. BRRRR provides regular income for the investor.

Home Stay

You can let out a couple of rooms in the home that you live for visitors. Many western tourists are interested in staying in such places to have an authentic local experience. There is less risk in this strategy and you can earn a good income too.

REIG

Similar to REITs, REIGs are informal groups which pool money, buy and manage properties, and earn income through rents or sale. The risk in investing in REIGs is higher, as is the return.

Private Lending

Investors with disposable funds can become private lenders to builders unable to get funding from financial institutions. This is a high-risk strategy and you must only lend to builders you know personally and trust.

Conclusion

What makes Kochi a good investment option for upgraders? It’s Kerala’s biggest cosmopolitan city, and one that’s thriving in terms of commercial growth. The IT industry in particular is growing rapidly in Kochi. If you’re looking for the best projects in Kochi, look no further than Varma Homes. They offer premium 2 and 3 BHK apartments in the best localities in Kochi like Kadavanthra, Thripunithara, Palarivattom, Edappally, Vyttila, and so on. All Varma Homes buildings feature superior construction and world-class amenities. Not only do they offer a luxurious lifestyle, but they also provide outstanding investment opportunities.