5 ways to Invest in Real Estate

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” –Franklin D. Roosevelt, U.S. President

 

Real estate is an immovable property in the form of land, buildings, or structures. It is a proven form of investment from generations. 

There are various ways of investing in real estate in India. Let’s understand a few of them:

 

 

Land:

The land is the most common type of real estate. One should buy it the most as possible as it’s a natural resource & they don’t make land anymore. It is a raw form of investment & can be encashed in various manners. People can generate returns on investment from land in the following manners:

• The value of land appreciates with time. So one can hold on to it for a longer duration & make good profits by selling it later.
• One can develop the land & sell it to generate enormous profits.
• Development means constructing a residential or commercial property or dividing it into small plots.
• Leasing the land is also an option for long-term income generation.
• Farming or cultivation is also a great option to generate income from land.
• It can be also used for warehousing or storage purposes.

 

 

Residential property:

Every Indian has the goal of first purchasing a home before purchasing any other asset.

Generate income from a residential apartment in the following manner:

 

1. Self-occupying the property & saving on the rental expense.
2. Letting out the property on rent & earning the rental income.
3. Holding on to the property & selling the property in the future at an appreciated price.

 

People can generate income from the residential bungalow in the following manner: 

 

1. One can convert it into a holiday home & generate income.
2. If located at a prime location, one can use it as a home cum office, saving on the office cost.
3. Bungalows always have a good resale value & keep on appreciating.
4. As bungalows are part of the land one can also reconstruct them into larger structures in the future.

 

One can generate income from an independent building in the following manner: 

1. An independent building is like a gold mine. One can sell it in small parts.
2. One can lease it in parts or as a whole.
3. It can be self-occupied and leased depending on the type of structure.
4. Independent buildings that command the highest values are located in prime locations.
5. It can be also sold at a profitable price in the future.

 

 

Commercial Property:

Commercial property is anything used to generate only income. It can be an office, shop, retail space, warehouse, building, etc.

Commercial properties command the highest return amongst the various real estate investment options. They are comparatively difficult to buy & sell. But it can generate maximum income if guided by a good real estate consultant.

One can generate income from commercial properties in the following manner: 

1. Self occupying it for business saves the rental overheads & improves profitability. 
2. It becomes an asset to the business. It helps business houses generate funds for expansion & growth.
3. One can lease it out for the long term & generate great incomes.
4. A prime location property is like a golden hen that will reap fruits for generations.
5. One can also sell it for bountiful profits in the longer run.

 

 

Industrial Real Estate:

Industrial real estate is any property used for setting up industries or production houses. This form of investment is suitable for people from industrial backgrounds. The investments in Industrial Real Estate should do only under the guidance of a good real estate consultant. Its benefits are similar to commercial property but its consumption is limited to the production or industry.

One can generate income from Industrial properties in the following manner: 

1. Self occupying it for business saves the rental overheads & improves profitability. 
2. It becomes an asset to the business & helps business houses generate funds for expansion & growth.
3. One can generate income by leasing the property as a whole in a fragmented manner.
4. Revenue generation is possible through rental income and partnerships as prime location industrial properties are difficult to acquire. 
5. Various government schemes and subsidies are available for industrial investment to generate income.

 

 

Fragmented property:

Fragmented real estate investment is the new kid on the block. It’s the latest form of investment. It raised the bar of the real estate market to meet the standards of the stock market.

REITs or Real ESTATE INVESTMENT trusts are one the forms of fragmented real estate. They are professionally managed properties like mutual funds. One can invest in these properties only via professional real estate consultants. 

Generate income from fragmented properties in the following manner: 

1. Easy entry & exit as compared to other properties.
2. Fixed income on a monthly basis.
3. Good appreciation from time to time.
4. One can sell it easily at a time of need.
5. The most organized way of investment as its part of the regulated market.

 

Caution: Investments are huge in Real Estate & returns as well. For some, it’s a lifetime saving. It is highly advisable to consult the best real estate consultant in town, before investing in any form of property. 

Also, invest in RERA-registered properties only.

You can always contact us for any advisory services.

Feel free to connect with us for any property-related queries. We assure you wealth generation bits of advice via real estate to the best of my knowledge.

You can always hire our interior design service for designing your dream home. 

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Read our previous Blogs:

The Value of Commercial Real Estate

Advantages of Buying an Under-Construction Property

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