In 1992, the two friends made a good income from their business. Raj was investing his money only in shares and Ravi kept his money in land investment and some stocks. Ravi suggested that Raj should make some savings in other investments as well, but Raj did not do so. After 3 years, Raj suffered constant losses in the stock market and lost almost 80% of his savings, where Ravi doubled the profit from his land investment and then Raj realized that investing in land, business, residency is the best real estate investment in India, where the risk factor is low and the returns are huge. Hence in this article, we provide detailed information, facts, and strategies about real estate investments.
How real estate investment works?
Real estate investment is a type of investment where you have to focus on your financial budget as well as future planning because it is a big and long-term investment. If you want to find the best real estate investment in India then investors are choosing the investment strategy based on the type of profit. There are two different real estate investment strategies:
- Quick Investment
- Long term Investment
- Quick Investment -In quick investment, the investor has the intention to sell the property quickly it is also called flipping.
- Long term Investment – Investor is investing the money in the home, flat, shop, etc for a long period of time where his purpose is to take rent and increase the value of property over time.
What are different types of real estate?
Many new investors are investing in real estate but they don’t know the all types of real estate properties or investments. The four main categories are:
Land investment is the oldest category of investment. It is vacant land or raw land that is undeveloped and is mainly used to build new commercial and residential properties to increase the value of the land.
Residential properties include homes, flats, townhouses, apartment houses, etc where families, individuals, or groups are purchase property or buy this property for rent. Investment in residential properties are also the best real estate investment in India. The rental or lease agreement is made by both parties which depends on the person or family is stay for how long period. Different types of houses are available:
– Co-operative housing
– Single-family houses
Businesses mainly use land or buildings for their operations which include commercial properties such as parking lots, medical stores, shopping malls, hotels, office buildings, personal stores, etc. Commercial property is one of the best real estate investment in India because it requires enough budget for constructing a small building with individual offices which after pays you individual rents for using your space and it is a one-time investment with a regular income. Commercial investment requires more finance compare to residential and land investment.
Industrial properties are consist of land or buildings space that is used by businesses for industrial warehouses, storage units, mechanical production, construction, car washes, research and development, transportation, logistics, factories, etc.
what is real estate investment trust?
In 1960, Congress established Real Estate Investment Trust (REITs), which is a real estate company that manages, owns, and operates the financial funds for generating a constant income. The processing of REITs is similar to stock trade where investors invest in different types of real estate properties like data centers, offices, warehouses, retail centers, apartment buildings, cell towers, hotels, etc. In REITs, it is possible for individuals to earn dividends without buying, finance or managing any property.
why real estate is a good investment?
Real estate investment is the safest investment as compare to other investments. In America, real estate investment is the top and preferred investment option instead of mutual funds, gold, stocks, bonds, etc
In India, people are very emotional and they always try to fulfill and satisfy their basic needs and for them investing money in a house is one of the best real estate investment in India. As compared to stocks, bonds and mutual fund investment real estate is safe and long term investment but it gives fabulous returns as well. The benefit of real estate investment is easy to understand, anyone can invest in this investment, it also have multiple ways or categories to invest and that is why real estate is the safest investment.
How to choose real estate investment?
For real estate investment different angles are as follows:
- Finance – Financing is one of the major factor for any investment, because without money nothing can possible to buy or purchase. But in real estate investment managing finance is difficult but nowadays it is easier to get finance for resident property through banks and housing finance companies.
- Tax advantage – In residential properties government provides tax advantages as compared to commercial properties. Under section 80C of income tax act there is 1.5lakh tax deduction is available for self occupied properties and under section 80EE, investment in affordable housing scheme is offered.
- Choose the location carefully – Family or individual is always see the location when he is looking for property because everyone is wanted peaceful environment, good nature, gaming zone, market near by, gym, school, hospital, etc. And choosing location is also become a important factor when the building or house is going to redevelopment because it will increases or double the price of your investment.
- Pay attention to your loan terms – Many times the fraud is done in such agreements just because of not giving attention in loan terms. The loan agreements have multiple clause and rules about the entire process of real estate investment which shows all pricing, important dates, penalties fees, taxes,etc important factors.
Real estate investment is the safest investment which gives you higher returns and multiple benefits within some years of investment. Nowadays, anyone can invest in real estate properties, because government introduces many schemes, offers, loan facilities, etc and also there are different sub investment options are also available which we discussed above from that option the commercial and residential are the best options for future investment, hence, it is the best real estate investment in India.