Meet Prince Raj Shrivastava, a Ranchi property builder who is gaining popularity on social media for his tips and advice, as he walks you through some key investment tips.
A good advice can change anyone, a good mentor can change everything. For Prince Raj Shrivastava, who is the managing director of Ranchi’s leading real estate company, Ekta Contech, his life learnings have manifested in teaching the younger generation about smart investment strategies in the real estate market.
Mr. Shrivastava is passionate about his mentorship and his advice helps thousands of young investors across the country. Here’s what he has to say about some of the most frequently requested property investment advice.
How to invest in real estate
One of the many reasons people are attracted to real estate investing is because they see certain people around them making a huge profit out of it. However, Mr. Shrivastava strongly recommends gaining a thorough knowledge of any area before deciding to invest in it, especially when it comes to real estate. Your investment will only be considered smart if you do proper research on growth prospects, return on investment and other investment factors.
Also, 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 just one is always a better strategy.
Real estate vs stock market: which is the best option?
As an experienced investment mentor, Mr. Shrivastava sees several reasons why real estate investing is better than the stock market. First, a smart investment in real estate can generate returns on investment of up to 55-60% in a few years, which is much better than an investment in the stock market.
Second, real estate investing comes with a tangible security in the form of the physical location of the property, while stocks have no physical value. This leads to the fact that stocks are highly dependent 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 according to Mr. Shrivastava.
How to choose the right property: the process of eliminating real estate investment
Mr. Shrivastava has devised his own strategy of filtering properties down to the best possible option. According to him, an investor must first identify three types of locations where he plans to buy the property: developed, developing and undeveloped locations. Instead of rejecting any of these options, Mr. Shrivastava suggests choosing 3-4 properties depending on your budget for each type of location.
Once that’s done, it’s time for the elimination process. To get started, identify the builders of all properties under consideration and filter out those with questionable builder reputations. You can do this by reviewing each builder’s previous projects and taking first-hand reviews from their customers. Formulate an aggregate opinion for each property based on all positive and negative reviews. This way, you can easily shortlist the best 50% of all available options.
Once that’s done, it’s time to focus on the amenities. If you have the option of choosing between two properties within the same budget, one with better amenities than the other, go with the former as it will produce higher returns in the future. Once you are down to 2 or 3 options, the final selection process will only depend on how much you can negotiate the price, and here the best option in terms of budget wins the price.