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Advice & tips on Investment in Real Estate

I was standing at the corner of my street, while my Uncle Ravishankar and My Neighbour Sanjay Kumar came across in their cars and blocked the road. These people are just like Tom and Jerry, Both of them work for Visakhapatnam Steel Plant , Both are of same age and designation but within a span of 15 years My uncle Ravishankar has a Toyota Corolla (14 lakhs car) and his sons studying in USA and My Nieghbour has a Maruti Suzuki Alto and thier children studying in a private college in visakhapatnam, It is really surprising to see People who start the journey at the same point end up differently, Only difference I had observed is My Nieghbour Sanjay kumar used to invest his money in insurance and fixed deposits where as My uncle used to invest wisely in Real estate

Many of the investors still feel uneasy about getting engaged in the property business. There are many factors which influence the decisions of the property buyers. It appears that buying real estates requires a great deal of technical as well geographical knowledge. Some people believe that it even involves huge financial expenses and a lot of difficult tasks. These issues are valid to some extent as any successful business involves difficulties. Yet, the outcomes of a flourishing property business are currently encouraging more and more fresh investors to get into the world of real estates. Investing your valuable funds in major properties for example, Property in Banashankarithat can provide the best value for your funds.

There are many reasons why people like to invest their money in properties rather than any other investments. One of the reasons could be the cash flow that they receive from the realty property. This flow refers to the variation between the income earned and funds spent on that particular property. Naturally, this flow can either be positive or may be negative. The result of the flow depends upon your preparation, evaluation and even the technical talents.

Another great reason is the appreciation of the property’s value. Appreciation can be of either "external" or "internal". The external appreciation is not concerned with the actual property but it is derived from the economical circumstances, scarcity of property, etc. Some investors make the best use of the foreseeing power and go for the finest deals of properties, which are likely to become a popular public stop with instant appreciation in its value in the upcoming years. The internal appreciation of property is received from the enhancement of the actual asset itself. The calculation via this process is not as complicated as the external one is. You buy property, spent money on its recovery and repairs, then after that you sell the property at a profit and whatever is left is your internal appreciation. That is also one of the many reasons why property in Bannerghatta Road is turning out to be one of the most lucrative options for people looking forwards to investing in a house or piece of land.

Advantages of property investment are endless, for example, you can even take up a loan against the security of your property. Any other investments cannot provide you with such excellent leverage service. And, in some cases the investors bought a property using the borrowed money and at the time of repayment the principal amount gets reduced because the property’s level which you own gets increased.

The property investors are also subjected to few tax concessions as they are many methods in which the ownership of a property can be utilized for legal and realistic tax evasion. Although this reason is not supposed to be the prime factor to encourage you to buy a property, but it can an important benefit. Another benefit would be payment received for rent, for instance, a property which you could provide on rent then the income you receive from it, is your unearned income and profits from the asset. Thus, investors receive many amazing advantages for investing funds in properties. These benefits and security in the property business induce more and more people invest their funds in real estates than in any other sort of investments!

Advice & tips on Investment in Real Estate Reviewed by Gowardhan on 2/14/2013 10:54:00 PM Rating: 5

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