Friday 10 May 2013

Basics of real estate investment !!


Real estate investment decision can be a tough job. An investor has to keep in mind a lot of parameters before investing into a real estate project. One also needs to compare it with other options available.
These comparison and consideration of various parameters actually increases the time period of the decision.
The decision making process becomes slow and sometimes may lead to a considerable loss.
In Investment advisory role, a good investment is taking the right path at the right time with right parameters into consideration.
Now, The basic question is :- What are the basics of real estate Investment ?

In my opinion following are important parameters which lead to good real estate transactions.

1. Location
2. Reputation of the Builder
3. First Price 

For any real estate project to be successful ,Location is the biggest factor. An investor should never compromise on the location of a project until and unless the project is from a very reputed builder who has the capacity to convert a dull location into a masterpiece in the coming time. A project near to a National Highway is always considered to be rightly located and past trends of price increase has proved it.

The reputation of the builder is also an important factor in deciding a good real estate transaction. As rightly said,the reputation of a builder can transform a dull location into a masterpiece.Reputation here refers to the background ,history,Quality of construction,timely delivery etc of the developer. In my opinion,an investor can compromise on the reputation of the builder only if the project has the best of the location.

Last but not the least,the price at which the property is being booked is the most important factor. Real estate history says,maximum profit is made only if the property is booked at the first price. Booking at the first price also has some risks attached to it. But an experienced investor can easily take these calculated risks.Booking at the first price gives an investor the EARLY MOVERS ADVANTAGE.
Compromising on the pricing parameter is feasible only if the above mentioned two parameters are being fulfilled.


Comments are welcome, both, supportive and argumentative !!!
Addition to the parameters will be accepted !!

Thanks !!!!



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