Real estate business offers lucrative investment opportunities and handsome return. People interested in multiplying their wealth invest in property as the prospect of a return to be made is higher than other investment avenues. However, people have the herd mentality and they tend to believe in market gossip to make investment decision rather than informed choice. Negative opinion spread faster in the market. Hence, basic fundamentals should be kept in mind to guide property investment.
Property Investment Guide
Many people have made quick money in this sector but all depends upon the market condition. Now is not the right time to invest to make instant profit. Property prices are at its peak as the market is full of speculators who keep the price artificially inflated for a long time.
Investors make money by buying cheap and selling at higher price or selling in the long term when the price has appreciated significantly. Hence, an investor needs to enter the right market at the right time and right product at right price.
The investor should deal with a trusted developer or real estate agent. Before making any agreement, inquire about the market reputation of the developer, previous projects, quality and delivery of the projects. Ask their previous and existing clients for their feedback.
Fixing a budget for investment is a good idea as most of the times a good investment opportunity is rarely affordable to all. So, one should look for the project within the range of their budget.
Locating good real estate projects is very essential. One can do their own research by looking for key factors that determine the potential of the market. Existing infrastructure around the project, execution timeline, social infrastructure, demand for commercial space and price trends are important triggers.
Growth in commercial property reflects the investment for offices which means upcoming employment generation. Job creation accelerates the demand for residential apartments. Every employment opportunity makes a potential buyer.
An investor should look for the quality project. A good investor will have set plan with long-term investment horizon. Long-term ensures ample time for demand to grow leading to price appreciation of the project.
The investor should not plan to sell the property as fast as possible. Timing the market is very crucial as every market is cyclical in nature.
Also, Read:
Understanding Real Estate Investment Trust(REIT)
Conclusion:
They should look for the best bargain at the boom period and make a profit. They should make a detailed plan regarding tax implication and expenses to be incurred when selling to maximize their profit.To know more visit www.propknack.com
