Real Estate business is found to be one of the most fascinating tools for making investments because when it is handled properly can results in considerable amount of profit. It is composed of several features with it which can give better returns to an individual endlessly. But it provided with the same level of risk factors within which one has to very cautious. Before investing in real estate business property, it is very much important for an individual to understand both the positive and negative aspects involved in it so as to handle the business in an optimized way.
Advantages in Investing:
1. Ample Profit
This is the most important reason for a large number of investors to get involved in the business. The individual proceeds with a small investment in raw land property thereby gaining considerable profit after a significant period by reselling to other person during which the value of the property gets increased.
Or one may involve in purchasing a property whose value is very low and they can involve in making some modifications such as repairing the damaged parts of the house, thus contributing to changing the overall appearance of the house. Now he can indulge to resell that particular property to client which can earn profit to the individual.
2. Generates Additional Source Of Income
The other major advantage of investing in real estate business is that it helps the investors who invested in the room on rent in Faridabad to grow more since it can generate extra resources to the persons who invested in those properties on a monthly basis. Since it contributes to a constant income for each month, it may serve much helpful for increasing the overall financial aspects for those individuals.
Disadvantages In Real Estate Business:
1. Includes High Transaction Costs
Most of the investors find it very difficult in purchasing; operating and maintaining the real estate operations since the cost that have to spend by these people are usually very high in these aspects. It is often preferable to buy real estate properties in a very large scale since they pays way for reducing the risk factors involved in it. But these factors make the process very difficult for the persons who used to involve in a very small scale.
2. Maintenance on a continuous basis
In spite of being a good business for investment purposes, it always requires constant and regular maintenance that has to be carried out is most of the cases. To start with, it always requires good management towards the property on a daily basis for all of its basic criteria. Then that particular property has to be managed for upgrading technical factors and to provide the necessary modifications to that place in the cases where the investors may have an idea for making that particular place for any long term investments. The activities in both these levels have to be carried out a large group of people and it is the responsibility of the investor to bare all the cost for all these resources.
3. Difficulties in Achieving the Target
Investing in real estate business properties often remains as a big challenge for the people who involved in it. This is the because, purchasing a new land in quite good location which must be abundant in its resources, to incorporate modern amenities to it and maintaining the good quality standards usually involves the use of proper human resources and is often found to be challenging task. It may be difficult for an investor to attain all these factors ensuring the appropriate safety measures and hence it is very tedious for them to obtain good command over the other investors.
It is also the responsibility of the investor to tackle all the political and legal issues that may arise in the places owing to the business land property. They are also solely aimed to make the necessary repairs to the damages and in upgrading the facilities that these properties are exposed to. To overcome all these disadvantages, one must have a strong focus towards the targets that has to be achieved in considerable period of time. Gaining proper experience and advice from the experts along with proper and unique planning strategies can help an individual to be more successful in this field in spite of all these limitations and drawbacks.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin