Choosing Between Buying Or Building An Investment Real Estate Property For High Real Estate Returns.
Real estate is concerned with a number of activities such as development and construction of townships, housing and commercial properties as well as the maintenance of the existing ones. High Net-worth Individuals, financial institutions and other individuals looking at viable alternatives to invest their money in among stocks, bullion, property and other avenues have been opting for real estate. The investors are assured of income and capital growth of the money invested in real estate hence stable and predictable income returns. Residential, commercial office space and retail sectors investments are some of the specialty in real estate. Real estate investment is risky because one has to put very high investments which suffers from lack of liquidity and have uncertain maturity period. To succeed in real estate you have to create a beneficial marketing plan and then practice a disciplined effort to the marketing plan on an even basis.
Residential and commercial properties investment is highly dominated by the high net worth individuals and financial institutions. Real estate investments funded by foreign direct fund are very minimal due to the many restrictions imposed on the funds such as a minimum lock in period of three years, a minimum size of property to be developed and condition for exiting. The construction sector of real estate is one the highest employment sector of the economy since it employs a large work force including a considerable number of unskilled labour and directly or indirectly affects the performance of many other sectors positively.
In order to succeed you must ensure that you market your real estate business and ensure that the rendering of the investment information to potential customers is done in the right manner which includes providing contact information for the clients who may be interested. The various marketing strategies that you may need are classified ads programs, ads in the “Freebie” papers, putting bandit signs or road signs, flyers and bulletin board posting, business cards, clothing, imprinted and promotional items such as pens and key chains. This will not only inform people of your existence but also provide them with the contact information in case they are willing to do business with you.
In order for an investor to get maximum real estate returns from a bought property they have to make sure that it is in a good condition, in a good location and free from any legal requirements. Investment in newly built properties is preferred to already existing once because the properties are modern and in good conditions needing no repairs and hence they have a higher return rates.