Today the fastest growing investment options in India are real estate investment options. In realestate investments, the possibility to multiply the money in a specific period of time with minimum risks is highly appreciable. The people feel real estate investments are the best investments for their money. The possibility to get manifolds on realestate investments is great.
There are different types of Investment options are available in the real estate investment market. The people have to analyse the pros and cons of each best investment options in the real estate investment process. The people can use a reputable internet source to find the preliminary information. The potential benefits and drawbacks of various real estate investment options are to be analysed.
The high clarity about the return on investments and the proper workout with proper commutations is required for the analysis of best real estate investment decision.
The best real estate investment options must generate lucrative returns in the long term and get more wealth to the people. The people have to select the best real estate investment option which suits very well in terms of
- Financial objectives
- Period of investment
- Tolerable level of risk.
Each investment option has its own set of guidelines, regulations and potential benefits. The proper analysis of pros and cons of various real estate investment options can help the people to feel more comfortable with their investment decision.
The people can approach the financial advisor to guide and help to find out which is the best real estate investments option to meet the financial goals. The financial advisor helps the customer to choose the best one based on their requirements. And the best builder will guide the buyers for the proper selection of best areas for investments in the real estate investment process.
Essential Factors of Real estate Investment Process
This process considers
- The basic factors of the investment
- The economic factors
- The risk factors.
- The utilities
- The maintenance
- The insurance.
The investment options, with properties which offers prime locations, desirable amenities, and competitive yields are great. Always the value of land will increase in the coming years. And there is no depreciation value for lands.
Logical Search On Areas For Real estate Investment Process
The people have to find out the areas which are selling much below the market value and also the areas which will sell much above the market value in future. Then select the areas which will fetch very good margin even in dull market situations.
It is a must to do the analysis of the prices of the area for the past 10 years. And also, what it will be after 10 years from now.
- Do the forecast on the possibility of developments in the area.
- Forecast about the future living standards in the area.
- Possibility for corner plots in the area.
- The proper road connectivity to the area and perfect connectivity to all the important places.
- The possibility for IT sector and other industries existence in the area and the developments.
- Locational benefits of the area with all favourable surrounding areas.
Care has to be taken to avoid agricultural lands, sloppy plots, and plots of irregular shapes. It will relieve the people from additional expenses.
The proper check is to done to find whether the area is prone to severe cyclones, water logging flood situations at the time of natural calamities.
The salty nature of the groundwater and the strength of soil are to be checked.
The potential benefits and drawbacks of various real estate investment options are to be analysed. The proper analysis of pros and cons of various real estate investment options can help the people to feel more comfortable with their decision.
Major Types of Real Estate Investment processes
The major types of this Process are
- Residential real estate – Direct investment process
- Commercial real estate – Direct investment process
- Industrial real estate – Direct investment process
- Land real estate – Direct investment process
- REIGs – Investing in Established REIGs – Indirect investment process
- REITs – Investing in Established REITs – Indirect investment process
- Real estate crowdfunding – Indirect investment process
Residential Real Estate Investment Process
- Flipping Houses – Flipping a house is the process of buying a house in need of structural improvements or cosmetic changes. And quickly finishing those improvements for a quick resale. By flipping houses, the people can earn money through rent. It is a steady cash flow.
- Renting Homes – The people can choose to invest by purchasing one or more rental properties. Then they find tenants to get regular income by monthly rents.
- Constructing Homes for Own Use – The people can construct home for their living purpose and save the money to be spend on home rent. It is a best opportunity to save the money on house rents.
Commercial Real Estate Investment Process
The commercial real estate investment process considers the factors such as
- Location
- Amenities
- Cost
Evaluate different commercial properties to determine which one will be the most profitable in the long term. Cash flow income can also come from storage units, office or retail buildings.
Industrial real estate investment process
industrial real estate investment process gives the people the opportunities to engage with other businesses that are looking for solid, long-term bases for their operation purpose.
Land Real estate Investment Process
Always the value of land will increase in the coming years. And there is no depreciation value for lands. In Land real estate investments, the goal is to put money to work today so that the people can have more money in the future.
The areas which are selling much below the market value and also the areas which will sell much above the market value in future are to be analysed. Then the people can select the areas which will fetch very good margin even in dull market situations.
Investing in established REIGs
The REIG is an real estate investment group. It is just like a mutual fund investment. People who don’t want to manage tenants may be more interested in investing in an investment group. Making an investment in an REIG is just similar to investing in a mutual fund. Here the investors funds may yield returns.
Investing in established REITs
The REIT is an real estate investment trust. It is just like investing in a company through the stock market. People who don’t want to manage tenants may be more interested in investing in an investment trust. The REIT investment is similar to the stock market investment.
Real estate crowdfunding
It is an online investing community for real estate investors. The people who are interested to start by making a small financial contribution might be more interested in real estate crowdfunding. The real estate developers pool their financial resources to make investments in commercial or residential properties.
Pros And Cons of Real Estate Investing Process
Pros
- Risk level is low
- Realize a good source of cash flow
- Possibility for lots of tax deductions
- Properties give good long-term returns.
- Most properties will increase in value in the long time
Cons
- Not as much potential for aggressive return
- Can require a lot of cash
- Poor liquidity
- Dealing with tenants and building issues can be difficult
- Real estate investment can be cash heavy
CONCLUSION
- Real estate investment process are not subjected to so much market fluctuations.
- The Real estate investments help us to get manifolds on investments
- The people can retain the property for the realisation of best resale rates.
- The best real estate investments will assure that we can reach the full potential in the future.
- We can expect stability to a greater extent in real estate investments.
- By doing proper analysis , one can come to the conclusion of stability and safety in real estate investments and prefer this one as a best option for investment.