Real Estate as an Investment Option

The investment we make in building or buying an apartment or any other building, etc. is called Real Estate Investment. Real Estate is one of the most lucrative Investment Options available. However, it is quite different from the other Investment Options in terms of the way the cash flow moves. Once a property has been acquired, it can be leased out to a tenant or sold at a higher price in order to generate returns.

Sources To Know About Real Estate Properties

• Real Estate Agencies: Real Estate Agencies are the most readily available sources to know about Real Estate Properties. The advantage of using a Real Estate Agency is that they can also provide legal help during the course of the transfer of ownership.

• Market Listings: Market Listings include a Multiple Listing Service or Commercial Information Exchange.

• Wholesalers: Wholesalers include public agencies and bank departments.

• Private Sales: The owner of a property may choose to sell it in a private sale.

• Public Auctions: Foreclosure sales and estate sales are popular ways of obtaining property at low prices.

Advantages

The advantages of Investing in Real Estate far outweigh the disadvantages. This is why most people choose to invest in Real Estate. Even if the property has been bought by paying for it in installments, lending it out or leasing it would allow the invested amount to be recovered within a short duration. The property can also be sold at a higher price. The beauty of a Real Estate Investment is that even if the property lies unused, its value increases with time. Thus, reselling the property after a period of time is a practice which is also followed. The returns are also considerably high.

Disadvantages

The legal procedures and the extensive documentation are the first hurdles in the purchase of Real Estate Property. The amount that has to be invested is also very high. Thus, it is not always possible for all the sections of people to Invest in Real Estate. The maintenance of the property is an additional cost that has to be borne.

However, if the sum for the initial investment is available, Real Estate is a profitable Investment. A Real Estate Investment guarantees a high growth margin within a short period of time.

References
http://moneyfor20s.about.com/od/yourretirement/f/realestateinves.htm
http://archive.indianexpress.com/news/real-estate-as-an-investment-option/824542/
https://en.wikipedia.org/wiki/Real_estate_investing
http://forbesindia.com/article/investment-guide-2015/return-is-king-in-real-estate/39453/1