Friday 20 May 2016

Why Invest in Real Estate?

Over the years of mentoring, sharing my experiences, providing guidance on trade and commerce, I often come across various questions based on the topics of business and investments. Both the terms have its own share of risk and return. Business and investments are two terms which run parallel to each other. I believe in smart and reliable investment. Compared to any other venture, I personally consider real estate has its own risk/return but with low liquidity.

Here, I am going to share few tips that might help to plan a smart strategy on how to get good return in real estate investments.

Three questions one should ask before investing in real estate – Why, where and when?

The first question – Why 

Every one of us wants to have secure financial status. The very purpose of making handsome money by working hard/smart is to invest in something that could give good returns. So question yourself and look into the market for the options that can help you to get these expected returns. You will be flooded with many options; considering one among the best is real estate.
If you decide cautiously and sensibly, real estate investments are likely to give secure returns in long run. Looking at the market, in past few years there has been a tremendous rise in property values. Even at times when the market did not do well, it has gained its momentum in course of time that certainly makes real estate a rewarding asset.

The second question – where

Property investments are something which should be decided without any proper understanding. So if your first question –why is satisfied, then you are ready to find your way. Finding a property worth investing is the trickiest aspect. It’s not about the economic uncertainty property in long run, but the knack of analysing your investment. Finding out the right point of investment, is where the risk is associated with. Compared to other investment areas like stock markets- purchasing shares, investing in gold, silver or other equally expensive metal might not provide good profits, unlike real estate. Real price do not fluctuate like the other investment options, so you in a right path.
Do not jump into conclusions; study the property completely before you invest. There might be possible risk, where the property might not worth the value that has been proposed to you.  Take an opinion of a real estate broker, friend who has purchased a property recently or a person who have idea about the land/property.

The third question – when 

Once you are prepared with the above two questions, the third is pretty easy. Being the most tangible investment, the investor undoubtedly will have a peace of mind after the right choice is made. Investors must have the capability to weigh the long term potential on the investment made. Unlike stocks or other goods where money has to be made at a time, real estate gives you exception to pay in regular intervals with the help of financial firms. Loans are convenient, plan according to your present and future earnings, paying capacity to avoid pitfalls. Owning a property is not a dream anymore with real estate.

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