Tips for real estate investors
By-Mr. Sam Chopra, Founder & Chairman, RE/MAX India
Investing in Real Estate is one of the first options that comes to everyone’s mind when we thing of a long –term and a safe investment especially in a country like India. But since the sector is so diversified, investing in it without a long – term vision can be a little tricky. That is why my first suggestion to everyone looking to invest in Real Estate is that it should never be an instant decision that you make. It is something that will directly impact your financial future, so set a right way to being this journey. The good part of this business is that depending on your financial capabilities and your experience, it has a variety of opportunities you can invest in. So first set your budget, explore the available options, evaluate their pros and cons, compare the possibilities and then make a smart cum safe investment that will make you grow financially.
For the first time investors, it is very critical that one understands the fundamentals of Real Estate. It is one of the biggest business opportunities for an individual as it can open up multiple avenues for making more money. With it having a capacity to multiply your wealth, a veteran realtor who carries good experience and understanding of all the things that you need to succeed can be very helpful in making the right decision. He can give you an expert advice and get the right things done for you. In addition to it, you as an investor should also invest in increasing your own Real Estate knowledge so that you can proceed smoothly. As new investors, with the first investment that we make, we start thinking that it is going to make us rich there and then; but we need to understand that Real Estate demands a lot of patience. The market scenario keeps on changing, so you need to proceed very carefully.
Real Estate already is very unorganized and has multiple angles. There is always a right and the wrong way of doing this business. As beginners we tend to makes a lot’s of mistakes as first of all we are sometimes not clear of what we are getting into and secondly we sometimes avoid following the systems. It is very appealing but it demands a lot investment in terms of time to plan and strategize your investment decision.
In Real Estate, one simple fundamental that will always reap benefits is “Take Risk, Take Action”. After analyzing and understanding all the possibilities and risks involved in this business, the important part is that ‘Are you has to be prepared to take that kind of risk’. We always want to add Read Estate to our investments portfolio but it requires a lot of initial funding and a regular cash inflow to protect you from getting stuck at a later stage. It is just about that risk taking appetite and a strategic planning that will help you in accomplishing success.
In a nutshell, I feel that first of all an investor should identify his investment horizon, whether he wants to invest for a short- term or long- term and the kind of Real Estate they would like to invest in. A comparative analysis of the market trend/rates versus the opportunities available can help them figure out what will bring the best ROI. Last but not the least, before anything one should understand the plans of the government for that particular market as that is one of the most crucial factors to decide the success of the investment.