Should One Invest in Real Estate?
Property yields rental returns and capital appreciation. It is a sound investment avenue. Here's some tips for real estate investors.
A significant amount of investments in property is by investors. An investor is an early entrant in a project, especially at the launch stage, and exits equally fast, as opposed to the end user who enters at the fag end of the project and stays on until he occupies the premises.
In the absence of any single window offering generic advice on investments in real estate and providing the overall picture, speculation happens.
There has been no organised manner for advising investors and they have banked on gut instinct. There are only limited sources of information available for the investor. These are far from comprehensive.
Mostly, they are market reports from international property consultant (IPCs) which only give a macro view, real estate brokers, websites, and advice provided by fund/asset managers if you are a big investor or a high net worth individual (HNI).
But, there is no independent source of information which is both authentic and accessible to everyone, and the problem compounds for the new emerging middle class investors who want to grow their money, and learn the investment formulae the hard way.
Amit Mookim, Associate Director - Strategic & Commercial Intelligence Group, with KPMG, seconds the view that real estate investments for the middle class have been a recent phenomenon.
"This has been on the back of quickly rising real estate values, easy access to home loans and high disposable incomes of individuals in multinational firms and corporates. Such investors are seen investing either in the areas where they stay, second homes, or their home towns," he adds.
Here are some views on real estate investments and investment tips that every investor should know:
The point of entry in a project is as critical as the point of exit. Experts feel that the domestic investor is still not savvy in so far as managing his investment portfolio is concerned.
A price hike leads him to sell off the property and reinvest in property elsewhere. Instead, one must take a view on the targeted RoI (return on investment) and then decide the point of exit.
Source: Economics Times.
A significant amount of investments in property is by investors. An investor is an early entrant in a project, especially at the launch stage, and exits equally fast, as opposed to the end user who enters at the fag end of the project and stays on until he occupies the premises.
In the absence of any single window offering generic advice on investments in real estate and providing the overall picture, speculation happens.
There has been no organised manner for advising investors and they have banked on gut instinct. There are only limited sources of information available for the investor. These are far from comprehensive.
Mostly, they are market reports from international property consultant (IPCs) which only give a macro view, real estate brokers, websites, and advice provided by fund/asset managers if you are a big investor or a high net worth individual (HNI).
But, there is no independent source of information which is both authentic and accessible to everyone, and the problem compounds for the new emerging middle class investors who want to grow their money, and learn the investment formulae the hard way.
Amit Mookim, Associate Director - Strategic & Commercial Intelligence Group, with KPMG, seconds the view that real estate investments for the middle class have been a recent phenomenon.
"This has been on the back of quickly rising real estate values, easy access to home loans and high disposable incomes of individuals in multinational firms and corporates. Such investors are seen investing either in the areas where they stay, second homes, or their home towns," he adds.
Here are some views on real estate investments and investment tips that every investor should know:
The point of entry in a project is as critical as the point of exit. Experts feel that the domestic investor is still not savvy in so far as managing his investment portfolio is concerned.
A price hike leads him to sell off the property and reinvest in property elsewhere. Instead, one must take a view on the targeted RoI (return on investment) and then decide the point of exit.
Source: Economics Times.
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