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Investment Opportunities In Real Estate

Updated on January 29, 2016

Real estate is not just synonymous to home now-a-days. The business has grown to exponential heights, in all parts of the world. The fantastic investment destination offers you great returns, and investment in real estate has been found to provide higher returns in comparison to the bank recurring deposits.

Investing in rental properties

The landowner proposition is quite old. You can buy a property and then rent it to others. With time you cover all your costs and also gain profits, later on. Both residential and commercial properties can be purchased and rented. Apartments are one prime investment areas these days. The EMI purchase option is also quite popular. You are not required to pay for the whole apartment at one time, but can pay for it through a number of EMIs or equated monthly installments, that may have a 5, 10 or 15 years monthly tenure. All leading national banks and NBFCs can help you make the purchase, by offering you low interest rate EMIs.

Stocks

The other investment option is to buy stocks of the company, that is into real estate business. Stock means shares and debentures. As the companies repute and profit rise through years, you stock value also rises.

Real estate investment groups

Real estate investment groups are kind of mutual funds that relate to the rental properties. You can easily escape the hassles of being a landlord by joining a real estate investment group. As a member, you can buy any number or properties. The group will advertise, rent them and also look for the maintenance and other functional and business aspects of the property. The company will take a percentage of the rent amount per month for providing these services.

Real estate trading

Real estate traders indulge in buying and selling of a property to get profits. They can buy a property, make customer-friendly modifications to it, and then sell it later at higher costs. You may require good amounts of ready-in-hand for this kind of business proposition.

REITs

A Real Estate Investment Trust or REIT is a trust that uses the money of the investors to purchase, and to operate property. REITs distribute more than 90% of their taxable profits to investors, to evade tax and to maintain their status.

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