Before we delve deep into the various aspects of Real Estate, we need to understand what investment is
Investment: An investment is defined as placing a certain amount of money in a tangible or intangible asset with the objective of earning a profit over a period of time. People who invest are the ones with a forward-thinking attitude. Real Estate is one such tangible asset which surely qualifies as a good investment.
Returns in real estate are rewarding enough provided you have the patience to wait.
Lets look at different scenarios of real estate investment
Scenario1 Resale of Property: Returns on Investments (ROI) in real estate can be in the form of resale value. Here one buys a property and then sells it when the markets are doing really well and in the process earning a profit.
Scenario 2 Rental Income: This is for the moderate risk takers. You buy a property and then put it up for rent where you receive a steady income. This method is more suitable for people who are looking for a steady income on a monthly basis.
Scenario 3 Brokerage: A real estate broker acts as a mediator between the developer and the buyer and is paid a certain percentage of the price of the property as his commission. This is applicable only if the sale has been materialized. Here there is almost zero investment and a healthy return and is one of the most preferred modes of real estate investment.
Conclusion: These are some of the methods through which real estate investment works.
---PRASHANT NAIK---
