Finding the Best Real Estate Property Investment Potential

It’s a well known fact that real estate property assets held for the medium to long term make solid additions to an overall investment portfolio and that our home is often our number one asset in terms of its value…which is why there has been a steady increase in the number of people around the world considering investing in property.

General media reports relating to investing in property tend to focus on how to afford a given property, which countries have developing real estate economies and where most buyers are headed this year in search of the lowest cost, highest appreciating property assets. But few if any focus on how an investor can actually make money from a given property market.

Questions such as ‘can you make money from tourism if you buy in the Czech Republic’, ‘what about local demand for housing in The Ukraine’, ‘is the government going to make buying easier now Romania and Bulgaria are in the EU’ and ‘will this mean more local buyers want resale property stock’ are never raised when really, these are the first and most important questions an investor should be asking!

After all, it’s all very well reading online that prices for properties for sale in Dubai have risen dramatically year on year since an announcement was made that foreigners can own freehold property assets in the emirate and then quickly hunting out some real estate that you can afford to buy and hoping to reap dividends – but did you know that there are infrastructure problems now affecting Dubai and lowering the appeal of property in the emirate and that questions about affordability are starting to be asked, suggesting properties in some areas are over priced?

You see, it’s all very well us wanting to invest in property and the media writing in general terms about all these random nations around the world where there is supposedly the potential to make a fortune from real estate – but how do we actually go about deciding whether there is a target client base likely to demand our property after we have invested in it?

Potential property investors not only have to do their due diligence on which countries have an active real estate marketplace but they need to determine if these countries offer them political and economic stability, the right to own freehold real estate and the right to take profits derived from property out of the country. Research has to be done relating to real estate taxation, tax on rental income and tax on capital gains, and even more importantly than this, a potential investor has to look at a country’s property market and determine how they can profit from it.

Is it right to buy to let, is it wise to buy to rent to tourists, should one be buying up rundown stock and renovating for resale or buying off plan assets and flipping them upon completion? These are the questions an investor needs to ask if they are to find the best real estate property investment potential around the world.

Tips to Buy and Sell Real Estate Property in India

Real estate business is a highly unpredictable business venture in India. Buying and selling of real estate property has equal probability of both profit and loss. Timing is the keyword in any real estate property dealings. Selling at the right time can result in huge profits.

The basic idea to make profit in real estate business would be to buy when the prices are low, hold the property till you feel the value has reached its peak and has saturated, and sell it out keeping a huge profit margin. But the problem which usually arises following this rule is the huge maintenance costs involved during the holding period which increase manifold in the metropolitan cities such as Delhi and Mumbai. This waiting period is very frustrating as you only have to incur expenses, which might reduce your profit.

Here are certain tips for a committed and serious real estate investor-

1. Decide what to sell?

Choosing the right kind of property and the proper investment method is highly important. Different kinds of property should have different ways of investment.

The most reliable property in which one can invest in to get an assured return on investment (ROI) is rental property. Rental property comes for as low as Rs. 5-6 lakhs in small towns. I am from a small town called Durgapur in West Bengal and I know how these properties are selling like hot cakes here. What one has to do is to simply stay in the house for a period of time; repair it occasionally for which you can also get tax exemptions and finally sell it. Although returns are guaranteed in investments of this nature, they usually trickle down slowly.

Owning commercial property is a better proposition compared to business property as the hassles of repairing the property as in a residential property is greatly reduced. Investing in such property usually bears good fruit. Location and infrastructural facilities should be taken into consideration while investing in commercial property. You get a better price for a location where you get the Metro, Railway stations, Bus Stands and local bazaars easily.

Owning a plot of land and selling it at the right time is one of the easiest and most profitable kinds of investment. This kind of investment doesn’t have any recurring costs associated with it and is thus a pretty safe investment. The waiting time can be particularly long in investments of this sort.

2. Gauging the market

In real estate business you have to be always very aware of the existing market conditions. India is a very fluctuating market, so keep an eye on it. Buy when few are actually buying else you may have to buy in the listed price. Sell at a time when you are in a position to make a good offer. Calculate the time value of money before declaring the price. Keep note of the expenses incurred during the holding time.

3. Pricing

This is the most important part of a real estate business. You have to be smart enough while pricing keeping in mind the competitive environment, the future utility of the property and other important issues like location of the property in the cities of India and the demand of the particular property. Thus, you can easily expect Rs 8-10 lakhs for a 3 bedroom flat in the Gurgaon region, which is the upcoming technical hub of Western India.

These are the few tips which can help in your decisions of selling and buying real estate property, but ultimately it is your will to take a risk and your vision which will make you reap good benefits from buying and selling of real estate property in India. If you are a real estate agent or property owner and want to sell your properties online? post a free classified ad and get more sales.

2007 Real Estate Property Investment Prediction Series

2006 has been an exciting year for real estate speculation in many of the world’s emerging nations with a good few pleasing surprises emerging from some of the more established countries in the world as well.

Furthermore, as more people become aware of the attraction of real estate as an investment commodity and as an alternative to pension planning for example, so an increasing number of property investors have been born in 2006.

So, in 2006 profits have been made by many investors and these people have reaped the financial rewards of their efforts – but still, don’t we all wish that we could see into the future and be able to second guess governments and policy makers’ decisions that could affect the economy of a nation or its overall attraction for a property investor?

What if we’d all had a crystal ball that foretold London winning the 2012 Olympic Games Bid – prior to the decision we could all have bought properties in the run down areas of the city that are now benefiting from millions and millions of pounds worth of regeneration investment and we could have made ourselves property millionaires overnight!

Well, the good news is that the forthcoming 25 part 2007 Real Estate Property Investment Prediction Series will offer property investors and potential real estate speculators insight into the likely 2007 residential and commercial property market movements in Australia, Bahrain, Belize, Bulgaria, Canada, Costa Rica, Croatia, Czech Republic, Dubai, Egypt, Estonia, Ghana, Latvia, Malaysia, Malta, Mexico, Montenegro, Morocco, New Zealand, Northern Cyprus, Poland, Romania, Thailand, Turkey and Ukraine.

Each of the single nation focused reports in the 25 part series will cover everything from developments affecting the foreign freehold ownership of real estate in each given country, it will highlight relevant recent, current and future expected or forecast political, economic and social developments likely to affect the attraction of a country’s residential and commercial property markets and specific advice will then be given relating to factors likely to create property investment hotspots on a country by country basis.

Finally, each of the 25 reports in the 2007 Real Estate Property Investment Prediction Series to be published throughout December will give speculators, investors and interested readers an overview of the property investment potential of each country meaning that each report is applicable even for an investor at the initial stages of their research into the viability of a given country for their own personal real estate property investment objectives.