Real Estate a Life Time Dream - Flow with a Wave

Concept

Real estate is an asset class basically categorized into residential, commercial and industrial, for own use or for rental income or invested for capital appreciation purpose.

Apartment or a Bungalow is an examples of residential property. And malls, shopping complex, office building complex, hotels, resorts etc. are commercial properties and a manufacturing gala or a plant are industrial properties.

Huge Demand and Unrealistic Prices

The demand and cost of real estate has significantly gone up due to ease in government policies for builders and buyers, public infrastructure development, industry & employment growth, loan & financing ease, domestic and foreign investments and rise in per capita income, especially the urbanization of towns and cities.

Real Estate Business Growth

Initial phase, builders were just focused in developing apartments, shops, complex with no or very basic amenities. But with passing times and cost affordability, builders started building luxurious amenities, customized interiors and artistic structures in a posh and high localities with car parking, nearby metro, rail, bus stations, schools, hospitals, market place, shopping malls, temples, garden, club houses, gym, swimming pools etc.

Remember your acquisition and maintenance cost gets significantly added with all above mentioned amenities and facilities. But not to worry if you have saved money, or you have stable earning source that can get you loan at the cost of additional interest to be paid every month as EMI for the loan contract term.

Actually, predictability of earning, extra earning sources, government policies, investors, banking finance and white & black money involvement has given real estate sector a bumper growth.

Real Estate Investment a Life Time Dream - Flow with a Wave

Basic real estate structure stand firm on land piece with support of RCC piles, pillars and plinth slabs covered with walls that has assumed perishable life. So it will require repairs or demolition and redevelopment after some years.

So if you are thinking of passing ancestral heritage to your 7 generations, it is a myth. otherwise the mahals built by kings in past would have been greatly used even today by their present generations.

Yet, we all think, instead of paying rent & brokerage and moving around, lets invest, pay EMI to banks. which shall give ownership rights for the piece of apartment or shop after complete repayment.

But there is a catch, you do not get ownership of piece of land and no one knows, what will happen to after your and your further generations. Who knows then government policies, land / society policy reforms (we must know tenancy act introduced in India, that forced then Zamindars future generations to streets), climate & environmental factors, political & economic factors, repairs or demolition and redevelopment cost etc. So we assume own use investors are just going with a flow of wave, as they currently need it and there is no better option.

Investors with purpose of rental income and capital appreciation purpose are poised on better side, till they get demand, better rental income and capital appreciation than any other investment vehicle, but right property selection, entry & exit timing are equally important in this case.

Investment Liquidation

Real Estate Liquidation is another issue to be thought before you invest for an objective. Other wise we have been seeing panic sell, auction sell by banks, for those who need immediate money liquidity either for inability of repayment or some other emergencies.

Also, see that the capital appreciation or rental income you are getting against the acquisition, repairs & maintenance cost paid, and mostly cost goes over or tallies the interest you pay regularly. Generally, retail or common buyers or investors are net net at loss or break even in real estate deals at large.

Exceptionally, ensure you do not get stuck into wrong promotions, property deals with corrupt builders, long term legal disputes may attract to get occupation or possession or let go your hard earned money.

Who makes real money in Real Estate business?

An ultimate question, who makes money?

The intermediaries like builders ecosystem, big domestic and foreign investors, government ecosystem, facility service providers, brokers, financial institutions and also black money ecosystem etc.

So before looking out for real estate buying for your designated objective, meticulously weigh it with above mentioned nuances. because no one can predict exact future, the terms, personal economics, market dynamics. So we advise don't just go with a wave, because selecting right property, timing entry and exit is critically important, especially for this asset class.

There are better investment options getting available nowadays in Real Estate

REITS (Real Estate Investment Trusts) are another options available to invest in real estate, as per your budget & capacity just like mutual funds, and these give better, steady income and capital appreciation over the long term.

There are many schemes available for investment. If you are interested, please contact us right now. We will study, suggest safe and best scheme that will fit your requirements, give better returns and safeguard your investment.