Investing in real estate is one of the most popular and most followed investment strategies today. Some years ago, real estate investment took the backseat as it was considered too risky and people wanted to play safe with their money. But today, real estate has come to the forefront of investments all over the world.
Investing either in property like high rises, buildings, homes and offices or just land that can be used to further generate capital is the process of real estate investing.
Today, one doesn’t buy property just to live in. Property is bought to sell, lease, generate more capital and sometimes even to provide a way out of heavy taxes.
Return on Investment
Return on Investment or ROI is the profit a real estate investor receives on investing in the said investment, in this case, real estate. Real estate gives a higher rate of return as compared to the average investment in the stock market.
On investing in real estate, one can get returns of a recurring nature by leasing the property. This is one of the smartest ways of generating returns. And after a while, when you realize that a huge amount can come from selling the property, then you may do so, thus surrendering your recurring returns for the sake of one big return.
Making a Smart Investment Choice:
When you decide to invest in real estate, it is important that you do your homework or conduct the necessary research into the property. Understand the topography and the potential the area has to provide you with the best returns on investment.
Listed below are two simple real estate ideas that Jeff Adams, your real estate guru, suggests you keep in mind while choosing your real estate investment.
Self Sufficient Townships or Mini Cities
Townships or mini cities are specific acres of land that are purchased by builders and have been turned into residential areas that have all the basic facilities like a school, a hospital, a playground, gardens, sports clubs, party houses and restaurants within the said land premise. This makes the area self sufficient and anyone living in this area need not travel much to avail of such basic amenities.
If you’re a big real estate player who goes ahead and purchases land to build townships or if you’re a small player who purchases rooms within townships, both are a good investment opportunity as buyers look for homes that come with easy access to schools and hospitals.
Fast Developing Regions
Choosing a property in a region that isn’t fully developed but shows the potential of becoming a high rise is one of the biggest investments you can make in real estate. This is because you can buy at a low price and sell at a high one when its market value increases with the area’s development.
Choosing this property requires a lot of speculation, for one can never say for sure how fast or whether at all the area will see any infrastructural development, which is why intense research into the area and the surrounding property is a must.
Jeff Adams truly believes that returns from any property that was bought in its developing stages and sold or leased at its ready market value is a profit to the seller/leaser.
With these points in mind you can never go wrong with real estate investing.