Why investing in real estate makes sound business sense?

In today’s fast paced business environment, you need to run faster to stay in the same place and make your money work harder for you. Having a sound real estate investment portfolio can help you develop a strong alternate revenue stream is the need of the hour.

“Money is like manure, you keep it in one place it stinks, spread it around and it delivers prosperity” 

investing in real estate

This is the golden rule of thumb that has driven investors to the real estate market in search for the proverbial pot of gold at the end of the rainbow. However, in case of any gold rush, the maximum money is made by those who buy low and sell high. Make sure you are one of them by timing the market right through sound strategies when it comes to buying and selling real estate or purchasing investment property. Certain ground rules stay the same across markets that are divided into end-users and investment seekers.

  • Real estate, the very term refers to the real value of a property which includes the air above and the ground below of the plot of land registered in the name of an entity or an individual.
  • Amongst all asset classes be it gold, commodities, stocks, currency futures, real estate is one asset class that can deliver exponential results in an abbreviated period of time. If you can bet right on real estate and get it right, then there areno limits to how far you can go in terms of maximizing your earnings.
  • Timing the market correctly and reaping its rich rewards can be summed up with just one age-old saying that is sure to keep you thinking.“If you are close to a waterfall you are bound to get wet”
  • Buying property near airports, multiplexes, malls, premium high streets, proposed rail stations, under development is nothing short of hitting a jackpot as you might see your investment deliver 100 times its value over a 25-year span. You can even expect a ten-fold increase in developing markets.
  • Individuals live in the past and always worry about their financial future. Investors tend to treat their entire net worth as a function of three things: Current income+ Current assets+ Future income.
  • Getting the right tenant mix is important. Analyse where residents go to work and see if there are any huge job cuts happening in the area where you are planning to buy property.
  • While buying or selling property, the condition of bathrooms and kitchens, roofs, plumbing, smoke and fire sensors, insulation, drainage prove to be the deciding factors. Make sure you get it right on this front.
  • An occupied property on an average fetch 10% higher market price than the one that has not been occupied since possession. The right broker who can get you the best property and best tenants can be a boon; if you plan to be an absentee landlord and not supervise things yourself.

Anecdotal evidence tells us that those who learn to invest in the right manner at an early age usually retire early. But you can still make it, if you have started late or had a rough start to your career.there is a severe demand pull for high-yielding investment opportunities as it is rental income that runs the households.  Keep these factors in mind while purchasing investment property and you are sure to make a killing in the real estate market.

Erin Emanuel