Technology | Business | Agriculture | Manufacturing

Real estate

Overview :
Real estate is the type of the investment. Here the people invest in the physical place.

Information :


Real estate is as simple as buying the place generating income through it. As here u make your property work for u where it will pay u in various way.As shelter is our basic need so we all have our own shelter may be in the form house, flat,bungalow, etc as we own our property.As those property while selling or renting we get good money from it. This money can be called as return on property or rent or capital gain. Let study basic. In traditional ways real estate seen like investing your life savings just by buying any under-construction land as Im future it will get high value so. Buy flat so that they can earn profit. Buy land farm as it get good value.

Pros :
Capital appreciation.
Positive cash flow.
Depreciation cost.
Tax benefits.
Portfolio Diversification.
Leverage.

Cons:
Entry barriers.
Iliquidity.
Management of asset.
Inability to diversification.

How it actually works:

1.Commercial Property

Retail shop:
As investing in retail shops gives you return or more value when it is located in mob area where there more traffic or more facilities of different shops.
Retails shops may be in such parts
Small – 100-500sqft.
Medium-500-3000sqft.
Large – 3000sqft.
As the value of retail shop may be according its Construction.
Means if it front facing,ground floor, open 2side 3side. As open shops are more costlier.The return in this investment will be rental. As you may receive good rent monthly. The second return is that you will get the good value in future.The value of property tends to be rise.

As you can use this retail shop for your Business and grow.

Office:
While investing on office you should take care of somethings such where it located as if it is located in backward area then it may be your loss.
As the office should be in the locality where airport, metro, road is connected.
If it is in Business district then it will be easy for Business to held their services.
Here is also the return is same as retail shop as here you can get the rental income.you can get the good value on future or you can utilize for your own Business.

Hospitality :
Investing in hospitality means in hotels, banquets or service apartments.

Residential Property:
Investing in residential property is like investing in plots, houses or in banglows
If you invest in plots then here you have to face a lot of paper work as it is not the ready to move property. It is under-construction property, here you earn return through selling to the builder and getting the good value. The consumer may be individual, may be builder or you can utilize it to build your own building and give as renting.

2.Land farm property:
As this investment is very casual. In India most of the people have their own farmland. As investing farmland gives good value if you selling to the farmer. As here in future you will gey the higher return.

REITS. :(Real estate Investment trust)


It is the new method of investing in real estate.Here you can start investing with the minimum amount such as 50000 as in this minimum amount you can’t invest in real properties but here u can invest and earn good returns. As here u can earn rental. All investor come together and each of them invest their 50000 in one fund and it create the trust as the head the trust or chairman invest the total amount of money of all investor in one property as they buy it and give the rental income to each investor. As all the legality is handle by the head. This how the REITS work.

TWO REITS:

As this is which listed on stock market.As you can buy just like stock through online.REITS is safe because 80% of money is invested in commercial projects.
Investor for REITS may be an institution, companies, hotels, office, retail mall, individual.

INVITS: (Infrastructure investment trust)


It work same as REITS but here the investors money is invested in infrastructure projects of government. As here the investors may be companies, institutions, individual as their money may be uses for power and tele-com projects, constructing road, solar and wind projects.
This investment as some pros as they pay 90% amount to the investors at every 6 months. You can start it with minimum investment with 10 lakh. As here u earn 10-14% returns.It has less volatile.

Kotak fund of fund :
This investment is done in foreign countries, means here your invested money is invested on foreign country REITs. Here you can start with minimum investment of rs 5000.The problem you may face during the currency fluctuation. As if the currency appreciate then you may face some loss and if there is currency depreciate then you will enjoy profit.
Their investment portfolio is in such way:
98% Singapore.
33% Australia.
9% Hongkong.
3% New Zealand.
1% India.
0.1% Thailand.
As they investment in data centers, residential, warehouse, logistics, offices

Return :
You will receive a return in the form of capital gain and in dividend income.
As it gives you return similar like stock market. As it is safe and secure. While investing in real estate you have to take care of fraud as there may be fake brokers in the market.

 

CONCLUSION :
As investing in the Real estate is one of the profitable returns comparing with other investment options.

Reference link-