Purchasing a real estate property in today’s age of expenses is a lot more than just looking or the perfect place to stay at. One has to approach it as an investment opportunity. The real estate is a great vehicle as it has numerous opportunities for growth, buying and owning real estate and is as good as investing in stocks and bonds themselves.
Basic Rental Properties
Top real estate builders in India say that basic rental projects are extremely sought after. As old as the times of land ownership itself, purchasing properties as an investment to eventually put up on rent is extremely popular. This offers the investor a chance to grow his portfolio as well as have an additional source of income.
In most cases this process works out for both parties. As long as you do not find yourself with a notorious tenant who damages your property, you can benefit from this set up.
Real Estate Investment Groups
Real estate investment groups resemble a mutual fund related to rental properties. When you wish to own a property without the hassle of playing landlord as well, you can join such a group. Say there are a number of Lucknow real estate projects out of which a company buys an entire block. Investors can then through the company purchase a flat and become a member. The maintenance and management is done through the firm for a small amount but the ultimate owner will still be you of the individual unit.
In such a set up, at times even if your unit is free of any tenant, the profits are divided in a way that you will receive some part of it.
Real Estate Trading
This is the side where you can go crazy. The method of flipping on properties where the investor barely holds them for about three to four months, this is done to play with the market when properties are undervalued and the market is on a streak. Though short term, this is an extremely risky method and requires skill and financial capital to succeed in.
as long as there is a things, wall street will want in on the action. A real estate investment trust is an instrument that companies use to purchase and operate income projects. Similar to a stock, it has an entire methodology of calculation and division.
Just a scratch on the surface of investments in realty, there are a number of factors that go into play and make investing such a lucrative business as well.