Real Estate Investments – Introduction

Real Estate (RE) refers to investment in immovable properties which includes land, buildings, flats etc. Investing in real estate involves the purchase of RE and selling it for a profit. Basically investment in RE involves a substantial investment and for a long period Luxury Apartments In Delhi For Rent of time. Majority of the investors invest in the form of buying a house. But RE investment is beyond this and the objective behind the investment is to make profits. Before making a RE investment, the investor should evaluate the risk appetite and investment amount.
The different types of real estate investments are as follows –
1) Rental – This aim of this form of investment is to rent out property to a tenant and earn a continuous stream of rent from the tenant. The value of the property also increases over a period of time. The risk in this form of investment is the owner of the property has to find out a tenant and also need to pay for the maintenance expenses.
2) Trading – Basically traders in real estate in order to make a quick profit buy properties for a short tem ( six months) and sell them at a profit. Traders look out for buying undervalued properties/very hot properties and sell them at a profit.
3) Long Term Investment – There is a certain group of investors who invests in real estate basically plot of land from a long term perspective. The objective is over a period of time the value of the property Average Time To Sell A House By Zip Code will rise and the owner will make a profit by selling it. The biggest flaw in this investment is money is blocked for an indefinite period and the appreciation of the property value is unpredictable.

READ  The First Impression Factor in Real Estate