How Smart Investment Can Help You Make More Profits on Real Estate?

Dec. 31, 2013 - PRLog -- Today he is making big profits and you are still there where you were eight years back. What went wrong? Why aren’t you in a better position than you were eight years ago?

There are many factors that come into play during investment in real estate  and you really need to do a lot of homework to drive all those factors in your favor before you pour your hard-earned money on a property.

There is no doubt that real estate investment is much safer than stock market investments, but to make the maximum out of your investment in real estate, there are certain things that you have to take into consideration once you plan to invest in a property.

·          Property Maintenance:

A real estate investment is quite different from a stock market investment; an investment property, which you want to sell or rent out, needs maintenance which is not required in case of a stock market investment where the paper work is all you need to do. Maintenance increases the value of your property but is a continuous process which you cannot avoid. So before you invest in a property, make sure that you are willing to work towards maintaining your property as long as you are the owner. Even if you rent out the property, there are expenses due to wears and tears, but this expense is worth it as it increases the chances of good return in future.

·  Location of the Property:

The location is one of the biggest factors when we talk about real estate. Make sure you invest in a property situated at a proper location which offers smooth connectivity to other major areas. Real estate in a proper location show high appreciation. Ensure that medical, educational, recreational facilities are in proximity which is a big attraction among home buyers.

·  Consultation:

While dealing with property matters, consulting a real estate agent (must be genuine) is always beneficial, as they are able to provide you sufficient information about the market conditions and also suggest you a suitable property in your preferred area.

·  Expenditure:

At times, properties may require some amount of repair work. Now before you invest, check out how much exactly you have to spend for the repairs – some houses demands so much expenditure that it becomes impossible to make up for the loss and it would be wise to avoid investment in such houses. In simple words, the money invested must come back to you.

·  Value of Property:

Renting out a property is a wise way to ensure a constant flow of money, so if you want to invest with an aim to rent out the property, then first you have to determine the amount you would charge. Now you cannot be unrealistic; for this you have to study the area, and compare the rents in other properties and then put a realistic value to the one you have chosen. Similarly, when you want to sell it, a comparative market study can help you determine a value of the property, and the price should be such that it returns your initial investment and that too with profit.

·  Appreciation:

While using the CMA (Comparative Market Analysis) tool, you may find certain areas that have not shown any property appreciation for a very long time, and the property prices in the area are significantly low compared to other areas. In such cases, it is advisable not to invest in those areas.

·  Target Location:

Normally, properties in stable areas, like major cities, have higher prospects of appreciation. It may take a little time, but sooner or later, there will definitely be increase in the value of the properties. Such areas with growth prospects are always suitable for real estate investments even if you have to wait for certain duration – it is absolutely OK to go for it.

Investment in real estate is although a less operation, but still, without a proper planning you cannot expect success. We often suffer due to our own lack of planning. So, the above written points will help you minimize the disadvantages and maximize the possibility of profit.

If you want to make money through real estate, then there are many options, like if your budget is low you can either go for an affordable house which is and will always be in demand among the middle class, or you can invest in properties when the market is low and hold on them until the market shows a high. And as I already said, if you can buy a property and rent it out, there is nothing like it. And in case, you are planning to settle abroad and sell the property, you can hand it over to a potential buyer at a time when the market seems quite favorable.

Moreover, there are many ways to increase the value of your property. Remember what I discussed in point number 1? Maintenance – if you continuously work out different ways to make your home more attractive, more luxurious, then rest assured that you can soon enjoy the increase in value of your property. Now what are the different ways? Ok, let’s say you add a garage, a carpet, a cupboard in the bedroom, renovate the whole house, build a beautiful roof-top garden and so many other ways are there. If you think little harder, you can soon come up with new ideas.

Presently, Delhi, Noida, Gurgaon, Bangalore and Mumbai are some of the Major Real Estate Destinations in India. Now, maybe this was more about residential, but you can earn profits through commercial real estate as well. Money is always there in real estate, it’s just that you have to be smart enough and remain alert at every step so as to ensure that you reap maximum benefits from the investment and don’t make any wrong decision in the excitement.

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