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Thursday, 16 June 2011

Investing Home

In our days, everyone is dedicated to strengthening their financial future by investing in one direction or another. Some try their luck directly into market share, while others have introduced risk-proof investment in mutual funds.

Some of investing in gold, while others invest in pension plans. Investment in real estate can be a good source, but prior to entry into this area, there is little, and the precautions to be observed.

You can enhance a property or living in it to enjoy or rent subsidized price. Good real estate investors, the strategies and adopt one of them is that after a certain time every 10 years, they land in the heart of the city from miles away to buy known. Those plots 10 km thick at Cannaught Place in South Delhi bought in 1970 to pay a few thousand rupees, even now between 30 to 50 crore crore cost. Even those who bought land in Gurgaon in 1980, grew as well.

It is the strength of real estate, increased with the passage of time in initial investments many times, and this feature is the most popular asset. At the same time make revenue from these assets, which subsidizes the high cost it more attractive.

Above all these things, is the property of the shelter to live the most important and you get a lot more than other sources of investment deal. Therefore, financial planners do not consider the old house to an investor under the investment in real estate. A house where a person lives can not be sold / received as a result, it can not be covered by the property. Either you invest to use the car or invest in the form of investments in real estate, it brings forth a general question.

Whether you buy land or build a house? Whether to invest in residential or commercial real estate? Whether you buy a new project or old? As with other investments, investments in real estate are also based on corresponding schedules. It is true that a huge amount of risk or interest in real property transactions, where you will be able to choose the right choice is very difficult.

What's in your hand for now, you have the answer to all these important issues associated with investments in real estate, and it is as a sensor / guide rail function to reach the property / assets.



Attention



It is possible that the story of your neighbors in real estate investing, you may be curious, and you can invest your mind in this asset class. But step before you invest your hard-earned money in real estate, if you stand facing in a position to train and pressure from the investment in the sector.



How it works



The rise in prices: if property land or building, residential or commercial real estate has always helped investors build great asset / property. If you had not invested directly in front of the bursting of the bubble price premium, then your investment would have been substantially higher revenues. It makes no difference what you bought and where. Under the pressure of development, high cost and the progress that the industry would have created a profit for you.



Inflation-indexed earnings



Compared to other real estate investments have a great advantage that you can make a regular monthly income from their rental. Among other investments, you can control the rental income as well. In order to increase sales as the market trend to increase, or you reduce the amount of rent. It is not only in terms of delivery, has increased demand for properties such as the rent does not fall during the time of the slums. Rental income to the cost of living index increases with the rhythm of time is relative and can be set with the rental income on this property a better portfolio for retirement income of a person.



Why it is not attractive



Although well suited for large funding is available, but it consumes much of your savings while you need the same. Investments by the loan, also binds to long-term capital repayment.



The high cost of tenders:



Cost for the camp is only half a percent more. But the cost of purchasing real estate is high. Expenses such as stamp duties, registration, fees for the preferred site and other expenses related cases as expensive enough.



Time of the survey



Investment made in real estate takes time to maturity / judgment. Therefore, one should avoid short-term buying and selling, while not spectacular, or an active investor. It is not as liquid as other investments. If there is the issue of shares, you can sell the same to your Demat account by simply. Receivable from the sale will be automatically transferred to your demat account. While on the other hand, if there is the question of property sales, the process long enough that several people. Property such as stocks and funds can not be divided, as it should be completely sold out in one go. Provided that the commercial real estate financing, it is not possible to sell a residential property in some areas.



Legal Issues



In many parts of the world, the buyer of goods by land titles were given certain rights and preferences. But there is no transparency in the real estate industry in India. The questions related to land are under water. Because of the lack of regulation in this area, the operator at night and as a result of property fund sector were far more risky than other investments.

Since the interference with the land and the occupying power, home or property by the tenants are full of great risk. Since real estate an asset that they can be used or be conquered by a lie. Therefore, it takes constant vigilance.

In addition to the property, other legal issues, such as delays in the construction of the manufacturers and not by the rules, according to the basic development plan for the following reason for the harassment



With the pace of time, the market gradually.



During these two or three years there have been several earthquakes in this area, but now these shocks have now been rejected. The market is expected to rise further. If this is not great, but based on small, affordable housing, comes on the market rose to his time.

So on one side of the housing market is stabilizing gradually, on the other hand, the rent of commercial properties were severely beaten because of their wealth and their demand is less. Here is an investment opportunity for those who can tolerate a little risk by investing in real estate. Because of the crisis in the office and retail space, prices are likely to remain of commercial properties in the next 12 to 18 months are stable.






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