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 or live 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.
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.
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.
4.Real Estate Investment Trusts (REITs)
A real estate investment trust or REITs is 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.
5. Online Real Estate Platforms
Online real estate investing platforms aim to join small investors in bigger commercial or 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.
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 India may make their plan come true with Omaxe Group. Since its establishment, the real estate company has been offering individuals residential and commercial projects that are luxurious on all facets.