How to Make Money from Real Estate?
Apr 12, 2017 Real Estate News
Real estate is by far the safest investment area. They don’t suffer the market fluctuations as severely as gold or share market. Even though liquid cash is not available readily in real estate, investors can see the price appreciating over the time. Also, the risks involved with real estate investment are less as compared to gold, shares, and mutual funds.
With the loans provided by the banks and housing finance companies, it has become easier for not only the investors but also for the common man to buy the property of their choice. Banks generally give out the loan up to 80 percent and the buyer and the lender can agree upon the time of the loan repayment. The 20 percent of the amount that is the down payment has to be paid by the buyer himself.
Real estate can give a promising return with the time if invested wisely. Investing in it needs a proper and careful research.
There are ways with which the investor can make money out of the real estate:
1.Rent it:
This is one of the most widely used methods. Buyers generally put their property for rent and use the rent amount to either pay the loan or save the entire rent amount and invest it in another project or property or simply use it for personal expenses.
2.Cash flow:
The basic idea behind cash flow is to make more money than required. Like for example, if a property id rented out for Rs 10000 and its monthly maintenance charges are around Rs 6000, then Rs 4000 is the cash flow amount. If the investor is careful with the cash flow amount, it can help him in his bad time.
3.Renovation:
If you are planning to sell the property, it is better to renovate it a little before. It will not only increase its market rate but will also attract more buyers. With time, changes and renovation and upgrades are required to meet the current trend and style. Buyers want to buy or rent the property that is updated to the current trend. A little enhancement can raise the value of the property.
4.Appreciation of the property:
Selling the property at the higher rate than bought at, is what every investor wants. But the prices of the property do not increase over night. They take their own time. Patience is required if the investor wants a higher return on the property. Investing in the market that is ever appreciating need time to fetch higher returns.
With the loans provided by the banks and housing finance companies, it has become easier for not only the investors but also for the common man to buy the property of their choice. Banks generally give out the loan up to 80 percent and the buyer and the lender can agree upon the time of the loan repayment. The 20 percent of the amount that is the down payment has to be paid by the buyer himself.
Real estate can give a promising return with the time if invested wisely. Investing in it needs a proper and careful research.
There are ways with which the investor can make money out of the real estate:
1.Rent it:
This is one of the most widely used methods. Buyers generally put their property for rent and use the rent amount to either pay the loan or save the entire rent amount and invest it in another project or property or simply use it for personal expenses.
2.Cash flow:
The basic idea behind cash flow is to make more money than required. Like for example, if a property id rented out for Rs 10000 and its monthly maintenance charges are around Rs 6000, then Rs 4000 is the cash flow amount. If the investor is careful with the cash flow amount, it can help him in his bad time.
3.Renovation:
If you are planning to sell the property, it is better to renovate it a little before. It will not only increase its market rate but will also attract more buyers. With time, changes and renovation and upgrades are required to meet the current trend and style. Buyers want to buy or rent the property that is updated to the current trend. A little enhancement can raise the value of the property.
4.Appreciation of the property:
Selling the property at the higher rate than bought at, is what every investor wants. But the prices of the property do not increase over night. They take their own time. Patience is required if the investor wants a higher return on the property. Investing in the market that is ever appreciating need time to fetch higher returns.
