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Real Estate, Real Estate investing
Real estate is defined as a property in the form
of Land or Building. Real estate investing means buying, selling and
renting land or buildings with an aim to make profit. Real estate
investment is one of the oldest method of investing in the world. A
piece of land often considered as a status symbol in countries like
India.
Why invest in property market.
World
has come to recognize real estate or property investment as the safest
investment on the earth. It has many benefits. People go for real
estate when they want to invest their hard earned money safely. This is
the first saving tips if you talk to any elders. Even though it comes
with some dis advantages like the Liquidity problem you invest here
because it is safe and highly rewarding. Real estate market is a
developing country like India has gone up considerably.
Real
estate investment is capital intensive investment. You need money
upfront to transfer the property. But more than 70 percent of the deals
are happening with the help of mortgage. What is a mortgage? mortgage
is an agreement which allows you to borrow
money from a bank or similar organization, especially in order to buy a
house or apartment, or the amount of money itself:
We see a lot of investment
strategies associated with Real estate these days. One of them is You
enter in to a contract with the seller that you will purchase his
property. You pay an advance of 20 or 25 percent and for the remaining
amount you agree for a mutually agreed period of say 3 months. You try
to find a person who is interested in the property within the agreed
time and sell the property to him for a high value. Thus document
charges and stamp duty are saved. You also make good profit.Another
strategy is you buy a property with an intention to undertake the
development of it and make profit. This is called real estate
development.
Real estate search or source.
Real estate is governed by different rules and traditions in
different parts of the world. To find a property itself is a huge task.
You can use different sources to find a worthy property.
Real estate agents
Advertisements (online, News papers and Magazines)
Banks and other financial institutions that sell or auction mortgaged properties.
By search personally.
These are the ways people employ generally to search properties.
Real estate law.
Real estate is governed by
different laws and rules by different people. In places like India
where people live as a family there are changes of dragging
litigation. You have to seek legal advice once you located a property.
You must also make proper enquiries about the ownership, market price,
and resale option of the property. You must use your intelligence in
over coming this major short comings. Frauds and fraudulent activities
do happen here.
Arrange Finance.
Arranging Finance is
another big concern here. You need money to settle dues and there will
be problems related to money at the time of purchase. Most people do
mortgage their properties to finance their purchase. Mortgaging is a
difficult exercise. There are people who have paid more interest per
month for the property than the amount of rent they received.
Mortgaging your property also means you are not the original owner
unless you clear your dues.
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There are huge amounts of risks involved
here. A careful Investor must verify the document well before he
settles his dues.Also obtaining a certificate about the boundary of
your property is another safe tips.Make your enquiries about the market
price and quality of your investment.
Foreclosure Investments.
This is one investment professional real
estate investors are all after. This investment is conducted by
investors to make good deal. Banks and financial institutions do
foreclose the mortgaged properties because of default etc. Banks are
not keen to make profit as they are only looking towards realizing
their investment. You can make real profit with this investment.
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