Choosing Between Buying Or Building An Investment Real Estate Property For High Real Estate Returns.
Real estate investment includes a wide range of activities such as development and construction of townships, housing and commercial properties, maintenance of existing properties. High Net-worth Individuals, financial institutions and other individuals looking at viable alternatives to invest their money in among stocks, bullion, property and other avenues have been opting for real estate. This is because the money invested in real estate provides stable and predictable income returns for its income and capital growth. A potential investor can choose between residential, commercial office spaces or retail sectors investments. When investing in real estate you have to put a large sum of money in the investment which lacks liquidity and have uncertain gestation period. In order to make your real estate investment a success, you will need a beneficial marketing plan and then practice a disciplined effort to the marketing plan.
High net worth individuals (HNIs) and financial institutions are the two most active real estate investors in both residential and commercial properties. Due to various restrictions like three years minimum lock period, minimum size to be developed and a condition for exiting the market, on the foreign direct investments, FDIs funded investments are very few. Among the various activities of real estate sector, construction sector plays a crucial role in the economy through employment of skilled and unskilled labour force which directly or indirectly affect the other sectors.
For your business to experience growth and success, you will need to attract a significant number of customers which can be achieved through marketing and knowing the right way to render information on your investment to potential customers and also providing contact information in case a person needs your services. The various marketing strategies that you may need are classified ads programs, ads in the “Freebie” papers, putting bandit signs or road signs, flyers and bulletin board posting, business cards, clothing, imprinted and promotional items such as pens and key chains. This makes people aware that your business exists and they can also get the contact information easily when they are in need of it.
The determinants of getting a high real estate return on a property that an investor buys in order to resell for profit is the location, condition of the home and lack of legal obligations such as previous tax requirements on that property. Investment in newly built properties is preferred to already existing once because the properties are modern and in good conditions needing no repairs and hence they have a higher return rates.