Real Estate Activities And Types Of Real Estate Investment.
The activities that real estate is concerned with ranges from the development and construction of townships, housing and commercial properties to the maintenance of the existing ones. Real estate investment has been an option for many high net-worth individuals, financial institutions and other individuals looking for the best way to invest their money in stocks, bullion and property. One way that many high net-worth individuals, financial institutions and other individuals is among stocks, bullion, property and other avenues in real estate. The investors are assured of income and capital growth of the money invested in real estate hence stable and predictable income returns. A potential investor can choose between residential, commercial office spaces or retail sectors investments. When investing in real estate you have to put a large sum of money in the investment which lacks liquidity and have uncertain gestation period. Having a beneficial marketing plan and practicing it with a lot of effort and discipline will improve your chances of success in real estate investment.
The major participant in real estate investments are the high net worth individual and financial institutions who invest in both commercial and residential properties. Foreign direct investments (FDIs) form a small portion of the total investments in real estate due to the various restrictions such as a minimum lock in period of three years, a minimum size of property to be developed and conditional exit. The construction sector may affect all the other sectors of real estate either directly or indirectly and also plays a very critical role in the economy by providing the skilled and unskilled labour force with employment opportunities.
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 makes people aware that your business exists and they can also get the contact information easily when they are in need of it.
The determinants of getting a high real estate return on a property that an investor buys in order to resell for profit is the location, condition of the home and lack of legal obligations such as previous tax requirements on that property. 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.