REAL ESTATEReal Estate deals with the law consisting of immovable property such as land,buildings, houses.It is one of the
oldest forms of
investment known to human being.Investmentis easy and great fortunes are made in a simple,humble manner.For instance,an
investor plans to invest in an industrially undeveloped area where he wants to set up industries.His plan is directed into decision and is materialized and the targeted area eventually becomes an industrially developed place after a certain period. The matter of the fact is that he buys a number of acres at a very low price. After 7-10 years, when he sells those acres, he gains hundred times of the actual price.In other words, his turns out be correct as he sells those land(after 7-10 years) hundred times more than what he had paid for.Well,this can happen to any part of the country.Keeping pace with the growing population,land price will continue to rise as the demand of land and houses will increase compared to its supply and the Real Estate will continue to offer one of the best investment opportunity in the country.In comparison to other forms of investment: If Real Estate is compared with other forms of investment(long term),then the comparison will show the Real Estate offers much greater profitlatter.Of course,not every piece of land will turn out to be winner but the frequency of earning are higher and despite the great potential rewards in some cases,risks are involved. So the necessity of careful study is essential before any kind of investment.PROBLEMS :Real Estate lacks liquidity.Liquid assetsare those which are easily converted into cash. For example-Stocks,Bonds,Govt Securities. But in Real Esate ,investments, it takes long years before you can make some money. Infact,by that time , the real money value also shows increase / decrease .So, it is wise not to tie up all your assets in this type of investment.Moreover,your financial position will detemine how much you can wisely invest in properties. But,apart from these problems,Real Estate is a real champion.
TIPS for the beginner’s who would be interested in investing in this lucrative business :1).It would be wise on your part to consult specialists before you act because you are new and novice to this field.So it would be wise to refrain yourself from any speculation until you become more informed.2).Before investing in Real Estate, you should consider the condition of the house you want to sell. It would be wise on my side if I put forward aninstance of selling own house.It may happen that without realizing, you already made a successful attempt in Real estate investment in buying your own home.So,if you have any plan of selling it, good landscaping has been known to considerably increase the value of a home.
3).Supreme profits can be obtained by buying run-down houses and restoring them for eventual selling.4).Judge yourself whether you are a land speculator or an investor. There is adiffernce between a land-speculator and an investor. An investor looks for ling term gain,and usually buys those things which he can afford to keep for a long term period . Where as a speculator buys land with an intention to make a quick sale and fast profits and will not hold land for a longer period of time. So,you have to judge what u want i.e. whether you are a speculator or investor and whether you have sufficient funds to sustain for long period.5) Learn to analyze the pros and cons.Come up with satisfactory and practical solutions.Innovate new avenues and approaches to several problem. It would be wise on your part to consult specialists before you act.6).You should have some idea about architecture,remodeling and how much it will cost to get the house you buy-back into shape. A layman cannot succeed inthe business.7).The location of the house(you buy)is the most important factor.You should study the utility facilities there such as shopping malls,neighbourhood,transportation.8).It would be profitable to lease land for commercial use.If a land borders the highway road, then it will be extremely valuable for the purpose-warehouse,gas stations, motels, petrol pumps etc..9)Beware of the offers that are run by large Land development companies as these firms make larger profits at the time they sell you the land.So it would be much lucrative deal if you buy any house, land on your based on your capital,future sense, common sense. And your luck.10).Do buy at a price that involves minimum financial risk.Invest only a modest amount of your own capital.It is necessary to look from top to bottom of the market,(prevailing economic situation).You are looking for a variety of properties which have a higher value dependent on the use that can be established for them.Learn by looking back on the mistakes made in the past.Review the opportunities that you have missed in the past.There are several opportunities in Real Estate during both good and bad times and it is up to you to choose or pick from very best deals-especially during times when it appears that Real Estate value and demand has reached the peak.It is practically impossible for all of us to fetch money or loans from banks in a tight money market in depression times. Hope my researches will be fruitful to my readers and who wants to invest in this lucrative business. As far I am concerned, the points discussed here are real keys to success.
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