Real Option

Real estate is an intelligent option to add to your portfolio and diversify your risk. Real estate, as an investment option generating profits for an investor was unheard of years before. There was just a market rumour that, real estate could at anytime capture the markets. Later on, the real estate market heated up and the scenario changed rapidly.

Take an example of Bangalore (India) where people who had bought land years back have suddenly become billionaires. They were just common people whose lands have appreciated. It has finally emerged as an ideal investment over the years and there are many takers this day for a land that’s available at a fair price or has an appreciation potential. The market is far more vibrant today and the participation of investors is ever increasing. Moreover there are many speculative market players who try to create an artificial rise in prices. So a balanced real estate market can prove a stable investment for a layman.

Real estate as an investment avenue

The investment scenario in the country has taken a backseat and has experienced a steep fall over the last few years. However, this downfall is a just the result of skyrocketing prices. The demand has steadied again as the need for office spaces and business houses have increased. The rentals being collected are the chief source of regular income. Thus the real estate sector is at par with other investment options like stocks, shares etc.

Investment in housing and residential property is a wise option with a massive potential. Moreover housing finance companies offer easy loans to people seeking to invest in property deals.

Office and residential spaces

These are the more trusted options available to an investor today. People who possess property can transfer it to a company or individuals and gain regular income from it. In fact more people who are into real estate investing are considering this glamorous option. Rental incomes are anywhere between 11% to 15% and are also offering the benefit of capital gains too. In another market option the customer can also lease the property and gain a monthly rental. However one must not forget that the risk element is to be kept in mind.

Diversification of holdings

As an investor one can hold property in various markets and also across many states and countries. If at all the market condition tends to slow down in a particular state there can be a total slowdown in the business of real estate investors. Hence intelligent investors make it a point to hold property across states so that there is a diversification of risk. Thus the business doesn’t suffer on a large scale and is more stable even at such times. An investor can further diversify his real estate holdings into residential and commercial holdings. But, office spaces and lease or rental properties remain evergreen options.

To cap it all, real estate remains one best option with people who are willing to play it big.

Leave a Reply

Your email address will not be published. Required fields are marked *