Making real estate investments seems like a daunting task for most of us. The general notion is that people with a high level of knowledge regarding the construction industry and only specialist real estate agencies assume the role of making investments on behalf of the general people.
It is not very uncommon to notice that real estate investments, unlike other forms of investments, can produce huge returns considering the initial principal invested. This is due to the reason that real estate properties generally appreciate over time. But what are some of the
key factors that cause this value appreciation and how can you make the most of it? This blog has all the answers for you to be able to spot the right investment and not miss out next time a great real estate opportunity that awaits you! Nandi Rameswara Rao is the Best Real
Estate Motivational Speaker who can advise you on real estate investments. For any queries, one can always hover to check out Nandi Rameswara Rao to be rightly invested in the real estate arena.
These are one of the times you can consider:
- Development Region
It is a very common fact that towns and cities undergo continuous development in infrastructure. If you try to spot the difference between the city you live in just a decade back and now, you will definitely spot tremendous differences. In fact, it isn’t uncommon for you to witness an entirely new region, area, and layout being developed! With the population increasing in towns and cities due to various factors such as employment and studies, there is a general need for new developments to occur to accommodate the increasing number of people. Smart real estate developers have a keen eye on emerging areas and bet their financial growth on such regions by investing in developments this is the right reason for you to consider buying from such developers at a very early stage as they come with massive discounts. Once the project is fully finished and functional, the value of the built asset increases with time and demand. If you can spot the right opportunity, then you can definitely make a wide-margin profit by making such strategic investments.
- Investing during the Construction Phase!
It is very common for huge construction projects such as townships and multicluster apartments to start selling during the construction phase of the project. This happens due to multiple reasons. Developer economics plays a crucial role in such situations. However, it is actually industry standard for most of the marketing and selling to start long before the true completion date of the project. This is one of the ways for the developer to minimize debt and increase the cash flow for project completion. If you are thinking about how that helps you as someone looking to make an investment and that is it not logical to invest in something that is already ready to function, like ready to be rented out or resold, this is one of the simple mistakes that people interested in real estate investment generally make. From an analytical standpoint, making an investment during the construction phase is the most profitable! In fact, if you are able to invest the entire capital and sustain until the project finishes, which might take anywhere between 2 – 4 years, then not only can the property be resold when the project nears completion at a higher cost, also if you decide to own the property permanently and be the landlord by renting it out, the higher the profit margins and the cap rate.
- Shell out when the market is at its lowest
We all find it difficult to make decisions when the economy and the market are generally not doing well. In fact, most people end up making very bad decisions during such high-stress situations due to all the financial uncertainties and pressure. Thinking and acting out from a rational mind during a tough financial situation actually can be very useful. By thinking like an investor, it should sound very reasonable to you that the best time to make investments is during times of a recession. While it may be true in most cases, one should also thread with reason during these times as some of the projects may stop, and companies may undergo bankruptcy which would be a catastrophic financial situation. Being smart means being able to identify through which company you are making this investment and if the company that you are investing with can sustain in the long run and how their previous records are. Assuming you have an excellent opportunity, grabbing a highly profitable real estate asset during financially uncertain times can be very rewarding for a smart investor. The main reason this works is because of the fact that the market always recovers no matter how bad the situations are. Once the public trust is restored and the market corrections happen, the industry begins to normalize, and this is when you can witness the immediate appreciation of your real estate investment. In fact, this even holds true for all the cash flows associated with the built asset, the
rents see a sharp increase as well as the entire property value appreciates.
- Great transformations
Real estate investing is not entirely a smart man’s game. If you’re someone who thinks real estate investments take a lot of holding power that you cannot sustain and all the lower-end assets are not attractive enough that you doubt their appreciable capacity, then there is another way to invest in real estate. If you have a keen eye for design and detail, you would be able to spot a property that is
undervalued. It can just be so that the actual built-up space is not resonating with the present generations living requirements and so the property has been seeing a hard time being sold which makes it undervalued. Such situations occur in old-built assets which are technically in a good vicinity. When the owner does not have enough ideas about the project and wants to cash out, then it’s
your lucky day. With your creative ideas, you can convert that space and transform it into anything you can dream of, including but not limited to, breaking down walls, repainting, reflooring, re-furnishing, and decorating. It is important to keep track of how much you’re spending on your renovation as you need to factor it into your costs. In fact, all the things you spend money on naturally get factored in during the value estimation of the property which is where you would turn a good profit upon finishing the sale.
- Real Estate… but not exactly real estate
If you are someone who feels investing and maintaining a built asset is too much work and you have no clue how to be ‘that guy, don’t worry, there are still many ways you can associate yourself with real estate investing! If you’re thinking, well, that is not possible, and are feeling extremely confused upon reading this, brace yourself for the most convenient and comfortable way to invest in real estate. REITs, REIG and Online Real Estate platforms, Real Estate Investment Trusts, and Groups are entities that own the actually built assets and also play a role in maintaining, marketing, and selling the properties. The investor’s money is used to run all these activities and in exchange, the trusts take a cut from the rental cash flow of these properties. This is a great deal especially from an investor’s POV as they are relieved from doing all the work and are still able to make a stable dividend-based income from their initial investments. Many
new aged platforms allow for investment via portals as well, where the investment for development is crowdsourced. Thoughts in the end!
There is always a right way to invest in the real estate market regardless of whatever the investment goals may be. What makes the built assets lucrative is the ability of the properties to appreciate in a quick manner and provide a high level of profits. Realtor Oxygen will help you with any solutions pertaining to Real Estate investment. If you are looking for solutions, you can consider taking advice from Nandi Rameswara Rao Best Real Estate Coach. The Best Real Estate Training Companies in Hyderabad that is ought to keep you certainty with any dilemmas that you are running through.