WORRIED ABOUT YOUR INVESTMENT? WHAT ARE VARIOUS RISKS
INVOLVED? IS REAL ESTATE A GOOD INVESTMENT OPTION? IF YES, HOW?
HERE’S THE ANSWER TO ALL YOUR QUESTIONS.
Investment is something which always involves risks. While one may gain a lot of profit
through investment, one may go through deep troubles as well. When it comes to Real Estate,
there is a vast range of options available. The problem being how to invest? Where to invest?
Real Estate is one of the best options available for investment. Real Estate has majorly
proven to have a good appreciation after some time which makes it a good investment
Real Estate investment may also depend upon one’s foreseeing. Although nobody can ever
predict things about the economy perfectly, some plans and layouts work well in this area.
The first thing before investing in Real Estate is knowing about various tactics and techniques
of it. One must be familiar to words like mortgage, appreciation, depreciation etc.
To begin with, there are some key rules before investing in any Real Estate property. These
LOCATION – the first Real Estate investment strategy is before investing in any
property, get into the knowledge of the locality. What kind of area are you investing into?
If it is an industrial area, invest in commercial properties but if it is a residential area,
investing in houses and flats can also be beneficial. Even while investing in both these
areas what can be beneficial is
a) RESIDENTIAL – invest in any residential after knowing the nearby locations, even
if you’re purchasing a house to live or for investment, the location would play a key
role. Make sure that essentialities are located nearby for example hospitals, schools,
colleges, market place or airport should not be very far away which would make the
b) INDUSTRIAL AREA – while investing into an industrial area, get information about
the industries set nearby, what kind of places would be needed if it is an official area
or there is a requirement of godowns for storage of the production.
FUTURE- While investing, make sure that your property has a good future, the area
may not be developed today but has a potential for development in the next 5 to 10
years. Your property may today not hold a very good amount which may even make
it easy for you to buy it but its development speed and future accessibility can make it
worth in coming years.
While the above mentioned are some key rules to invest in Real Estate, here are some tips
and tactics for Real Estate investment strategies.
Do not buy two properties in one area- While this may seem a very simple thing but if
you are investing into Real Estate in order to get benefits, not for your residential
purpose, do not buy two properties in one area. This is because there is always a chance
of depreciation of the value, thus you minimise your risk by investing in two different
areas as the value of the property may vary from area to area.
Buy, remodel, rent- today is the world of fancy areas. If you get any property which you
can remodel and reinvent, do invest in it and after changing or modifying the looks, you
may get a high rent or may even use it for your purpose.
Search, work and invest- this is a major point in Real Estate investment strategy. Before
investing in any property, search about its pros and cons. Work on your data and then
invest. If you are an active investor invest in a property which may bring you a high profit
in a small number of days but you are not interested in rotating and flipping your
property, then invest into a property where the appreciation is sure but slow.
Do not leave the property unused- If you make any purchase, make sure that your
property is being used in one or the other way. You may use it as your residence, office
etc. or may rent it as a house, shop etc. Leaving the property unused would reduce your
source of income. Real Estate investment has always been considered a good choice
because it does not leave you empty-handed, even if you do not receive a good profit, you
won’t get into a loss as you could pay your E.MI.s through the rent or lease or may save
your rent by living in it. Use plots by constructing small apartments or shops or offices
and rent them to get a profit out of them even. The more you work on the property, the
more you receive the profits of it.
So these were some simple things which you must know before investing. Investments
have always been a risk involving business but these risks can be minimized by a keen
look at the economy, having a good knowledge of your stream and working out the ways