Different Ways of real estate investment

Real estate investment has gained impetus in last few decades in India, not only because of the high earned profits but the relaxation of investment norms and easy loan availability. The article acquaints you with the various investment approaches of the real estate market. Besides possessing a home for your self, you may enjoy the multiple investment opportunities in the sector. Different ways of planning your real estate investment can make you earn varied profits. Let’s see how.

Renting the property

In this kind of investment the buyer intends to rent out the purchased property. Besides owning the property, the kind of investment offers a simpler and a steady source of income for the buyers. The option of purchase may include a residential or a commercial property. The commercial properties tend to be pricier as compared to residential properties. If you want to enjoy high rent profits, you need to make bigger investment of purchasing a commercial property. However, a residential property too can earn you substantial profits but well thought-out and vigilant approach is a prerequisite.

Renting a property is undoubtedly a profitable deal. Although, the owner is liable to pay the maintenance costs, utility taxes, house tax etc. but being a landlord empowers him/ her to charge enough rent to support all such expenses. Moreover, the rent period of the property bestows you with double advantage. Besides monthly income, the property simultaneously accumulates the increasing appreciation value in the market to reap good returns, if you plan to sell it in future.

Investment in Land

In this kind of investment “a property is developed on a property”. For instance, a purchased land is utilized to build multi-story apartments where buyer pays only for the land and end up building many apartments to earn enormous profit. Many buyers have gradually developed as builders or real estate developers with this way of real estate investment. Many land buyers simply retain the property and sell when it is real profitable but this kind of real estate investment usually demands longer duration of property on hold.

Real estate trade

this is the most prevalent form of investment in the real estate deals. Such investors “buy properties from properties” but for the purpose of making money. Such a buyer grabs a potential property to earn high appreciation in shorter duration where buyers are usually the property professionals carrying market experience. Such properties are available in remote locations or locations under the proposed development plan of a city which ensures massive development in upcoming years.

The real estate potential of remote areas has higher appreciation probability than developed areas nearing saturation. Such areas may not be judicious for dwelling but a lucrative opportunity to invest. Purchased property should have short term retention to crack a highly advantageous deal. A buyer must keep-on consulting a real estate agent to seize the appropriate time to embark on a profitable deal. However, a buyer may face hardships in this kind of investment to keep property on hold for longer durations in case of market slump or sluggish area development. Short term investment may unexpectedly become long in such a scenario but the possibility is rare.

Adding value to the property

There is another category of investors who purchase devaluated properties at reasonable or cheaper prices with an intention to renovate and extract the maximum benefit from the revamped property. For instance, an investor purchases a house in unfurnished conditions readily requiring renovation. Refurbishing it may take some time but adds value to such a property. The investor then vends the property at higher rates to earn substantial profits.

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