REAL ESTATE FOR BEGINNERS

‘Real Estate’ you must have often heard this term as something related to investment.But what is it all about? Let us understand from the beginning.

Real estate basically means a piece of land and any property  built on it like a building,factory,a house etc. The property has to be attached to the land and any other movable things like furniture,personal belongings,etc on that land would not be considered a part of real estate.It is a great way of short term as well as long term investment.It is quite popular nowadays because of being less risky as compared to other forms of investment.Now that we know what exactly do we mean by real estate,let us see what are the types of Real Estate.

A property used for any sort of business purpose is considered as commercial real estate.It includes offices,malls,shops,parking,theaters,etc.

Any property used for living purposes is considered as residential real estate.It includes single-family homes,condos,duplexes,townhouses,etc.

A property used for any sort of manufacturing,distribution,production,storage,etc. Is considered as Industrial Real Estate.It includes factories,warehouses,etc.

Any piece of land without any sort of property built over it is considered as Land in real estate.

Real estate is a very good thing to invest in as compared to other investment.It is also a long term investment so the profit generation is continuous.Being a growing market,there is a very high percentage of chance that it would be profit able.

Analyzing the documents carefully and having proper knowledge about the legal work is very essential as it prevents any sort of fraud in the future.All the documents should be precisely checked by an expert and everything should be clearly mentioned in the contract only after which you should move on with the further process.

This is a very crucial factor that would later on decide how much profit you would be able to earn.For example, if you purchase a residential property at a place which is in development process,later on when that area would be developed properly,on selling that property,you would be able to earn a large amount of profit.

If you are clear in your head how much you want to invest,your options become very clear and precise.You can directly tell your real estate agent your budget which would make it easier for both of you to explore the options.Also keep in mind there are more expenses in it other that the price of the real estate.The amount your agent will charge,the amount for documentation process,etc.

Buying a property and then renting it out is a very great way for constant revenue generation.You can buy an apartment and then put it out for rent which would help you to generate monthly revenue.You could also buy a villa near a tourist spot and then offer it for durations according to your client’s will.This is a very easy way of one time investment and would help you to generate money for a very long period of time.

 Purchasing a house or an apartment and then selling it during boom is also a very profitable way of investment.It is also a very safe way of investment as the value of properties keep on increasing rapidly.In the same way you could also purchase a piece of land and then sell it in future in a profitable manner.You can also purchase a piece of land,build a property on it and then sell the same piece of land for a much higher value.

It is basically a company which owns a real estate and operates it to generate income.Investors invest their share in high valuing properties through these companies and later on get dividends accordingly. Now these investments could be in a very big property or even in a small one too.People can invest according to their capability and then earn interest.

Is is a very simple and easy way of investment as you can comfortably invest without having to travel from one place to the other.This process is known as Real Estate crowdfunding.It allows business to get in touch with a large number of investors.This is beneficial for both the investor and the companies as smaller companies also get many investors and investors also get a choice of what type of company they want to invest in.

Purchasing a commercial estate and then using it for business purposes is also a form of long term investment.If a person buys a shop and then starts his business in it,he will keep on generating an amount which is like an interest he is getting from his investment.

Though Real Estate can be a very exciting thing to invest in,we should also keep in mind the kind of people we are involved with in this process.They should be trustworthy.There are a lot of frauds happening in the name of real estate that people are not very well aware of.You can always hire a Real Estate agent so that everything is legal and you know what is everything about.

If you were able to understand everything you read above, CONGRATULATIONS, you are no more a beginner in this field and know all the basics regarding Real Estate.