Meet Prince Raj Shrivastava, a real-estate builder from Ranchi who is gaining popularity on social media for his tips and advice, as he takes you through some key investment tips.
Good advice can change anyone, a good mentor can change everything. For Prince Raj Shrivastava, who is the Managing Director at Ranchi’s leading real estate firm Ekta Contech, his life learnings have manifested into teaching the young generation about smart investment strategies in the real estate market.
Mr. Shrivastava is passionate about his mentorship, and his tips are helping thousands of young investors across the country. Here’s what he has to say about some of the most frequently asked tips in property investment.
How to Invest in Real Estate
One of the many reasons why people are drawn toward real estate investment is that they see some individuals around them make a huge profit off it. However, Mr. Shrivastava strongly recommends gaining a thorough knowledge of any field before you decide to invest in it, especially when it comes to real estate. Your investment will count as smart only if you’re doing proper research on growth prospects, ROI, and other investment factors.
Additionally, based on his own life’s journey, Prince Raj is never in favor of putting all your eggs in one basket. So when it comes to investing, relying on multiple markets instead of one is always a better strategy.
Real Estate vs Stock Market: Which is a better option?
As an experienced investment mentor, Mr. Shrivastava sees multiple reasons why real estate investment is better than the stock market. Firstly, a smart investment in real estate can yield ROIs up to 55-60% in a couple of years, which is far better than stock market investment.
Secondly, real estate investment comes with tangible collateral in the form of the physical location of the property, while stocks hold no physical value. This leads up to the fact that stocks rely heavily on market dynamics, the impact of which is very less on real estate. In conclusion, real estate is a better investment choice than the stock market as per Mr. Shrivastava.
How to Choose The Right Property: The Elimination Process of Real Estate Investment
Mr. Shrivastava has devised his own strategy of filtrating properties down to the best possible option. According to him, an investor should first identify three location types wherever they are planning to buy the property: developed, developing, and under-developed locations. Instead of rejecting any of these options, Mr. Shrivastava suggests choosing 3-4 properties based on your budget from each location type.
Once this is done, it’s time for the elimination process. As a starter, identify the builders of all the properties in consideration and filter out the ones with questionable builder reputations. You can do this by looking at each builder’s previous projects and taking first-hand reviews from their clients. Formulate an aggregated opinion for each property based on all the positive and negative reviews. This way, you will be able to easily shortlist the best 50% of all the available options.
Once this is done, it’s time to focus on the amenities. If you’re getting the option to choose between two properties in the same budget, one with better amenities than the other, go with the former because it will yield higher returns in the future. Once you’re down to 2 to 3 options, the final selection process will depend solely on how much you can negotiate the price, and here, the best option in terms of budget takes the prize.