Investing in real estate can be a far better choice than buying stocks and bonds. Unlike bond or stock buying, the potential buyer of real estate can make use of leverage and buy property by paying only a part of the total cost and then paying the rest in EMIs.
Moreover, owners can then rent their space for extra income orlive in the place without the worry about monthly rent payments. Alternatively, owners can also sell their properties for a better price during a seller’s market.
The best part about the real estate market is that there is no one way to invest here. There can be many ways of investing in real estate.
The five most common ways to invest in real estate in India are discussed below.
1. Rental Properties
A great way to invest in real estate in India and earn money from it is by investing in a rental property and putting it on rent. It ensures regular income. According to the RICS-Knight Frank Report, about 30% of people live in rented houses.
However, this investment option has its downsides, as well. Sometimes owning a rental property may become a cause of headache when the tenants start damaging property. It can be a tedious task to manage some tenants and ensure timely rental payments.
Plus the rental property has many risks involved. Apart from the damage case scenarios to the other problems, we generally see that the returns need to be much higher than the investment you do from purchasing to do the upkeep of that property. When we are searching for ways on how to make money from real estate in India, rental property seems like a great idea.
Most of the time, to keep these rental properties in the best conditions, we have to do constant renovation and other works, so, it can be safe to stay and attract other tenants, but the renovation costs and other costs related to the property go so high, that it doesn’t financially make sense to keep that property and maintain it. Real estate investment in India generally in the rental market is a hit or miss scenario.
Still, rental property investment in India can be a very viable option if you get skills and knowledge and gain the experience to survive in this market.
2. House Flipping
People who have experience in real estate marketing, valuation, and renovation can do house flipping. Doing this needs capital and the ability to see, understand and do repairs when needed. In this, the capital is tied up for a shorter period which means that it may offer a quick return. It just requires deep knowledge of the market.
House flipping can be a way when you are finding ways on how to make money in real estate India. House flipping can address that issue, but it requires deep knowledge and understanding about the housing market and also it takes a lot of planning and other tricks to be successful.
People who flip a house can underestimate the time and investment it requires to do this process when they source ideas on the best real estate investment options in India. Some people also underestimate the skills required to do house flipping, as it requires a lot of skill and a deep understanding of the market.
3. Real Estate Investment Groups (REIGs)
People who desire to have rental real estate and don’t want to bother themselves about running it can opt for Real Estate Investment Groups or REIGs. It is similar to mutual funds and is a company that either builds or buys a set of apartment blocks and then lets investors purchase them.
Here the company becomes a medium of purchase, and the investor becomes a part of the group. In REIGs, a person may own one or more living spaces, and he doesn’t have to worry about handling and maintaining the spaces.
It can be a great option if you are looking on how to invest in real estate in India with little money as it can be a low investment option for people in those circ*mstances. The Real Estate Investment Groups or REIGs can be a great source of revenue generation, if you are inexperienced in the housing market or don’t invest a large amount in real estate.
Real Estate investment Groups also have very strict guidelines on what the investor can or cannot do with their properties. Choosing some good REIGS can be very stressful and difficult at times. So, consider all the factor and rules and regulations about any REIGS before committing to them.
Also Read:7 Tax Benefits of Investing in Real Estate in India
4.Real Estate Investment Trusts (REITs)
A real estate investment trust orREITsis an option for those wanting portfolio exposure rather than a real estate transaction. It is created when a trust utilizes investors’ money in purchasing and operating income properties.
The best thing about REITs is that they are highly liquid. Investors earn from this option without having to actually buy or manage any property. This payment is dividend based and not unlike being a stockholder in a major company.
It can be a great option if you are looking on how to invest in real estate in India with little money as it can be a low investment option for people in those circ*mstances. The Real Estate Investment Groups or REIGs can be a great source of revenue generation, if you are inexperienced in the housing market or don’t invest a large amount in real estate.
Real Estate investment Groups also have very strict guidelines on what the investor can or cannot do with their properties. Choosing some good REIGS can be very stressful and difficult at times. So, consider all the factor and rules and regulations about any REIGS before committing to them.
5. Online Real Estate Platforms
Online real estate investing platforms aim to join small investors in biggercommercialspaceor residential deals. In this, the investment is made via online platforms that are also called real estate crowdfunding. It also requires an investment of capital, but it is comparatively lower than what is acquired in purchasing the properties directly. Furthermore, this option offers geographical diversification, and a person can invest in single or many projects.
Online real estate investment platform India can be a hit or miss for you depending on your skills and experience. When you consider the fact, it still requires a large level of skill and ideas to invest in real estate online.
Although this type of segment requires significantly low investments, it doesn’t translate to better rental property investment in India or anywhere.
Conclusion
Investing in real estate in India may seem daunting for someone new to real estate investing. However, with the right developer and guidance, this sector is a magnet for financial gains for investors. Those who are planning to invest in real estate in Delhimay make their plan come true withOmaxe Group. If you are searching for the best way to invest in real estate in India as we are the trust you are always looking for.
At Omaxe, we envision creating a better tomorrow for India, and in order to turn that vision into reality, we have worked relentlessly since 1987 to provide world-class real estate services for people.
Since its establishment,the real estate companyhas been offering individuals residential and commercial projects that are luxurious on all facets.
