add share buttonsSoftshare button powered by web designing, website development company in India

Property Investment – Strategies And Fundamental Drivers

Wednesday , 22, September 2021 Comments Off on Property Investment – Strategies And Fundamental Drivers

Investing in real estate, be it residential, commercial, agricultural, recreational, health care, student dormitories, or any other specialty real estate sector seems to be the most popular and widely used form of alternative investment and is used as a long term low risk investment.

A real estate investor's primary goal is to generate rental income and/or capital growth either through natural depletion or through capital appreciation. Regardless of the form or industry, real estate investments are solid, tangible, and “real”, as real estate cannot be depreciated over the long term, provided due diligence is observed in the acquisition phase. 'Get redirected here' to find the real investor while investing in a property for sale.

Property Investment

Image Source: Google

Investment Strategy:

The traditional form of real estate investing is a simple lease purchase, in which the investor purchases the property with a combination of cash and mortgage debt and seeks to cover the cost of the mortgage through rental income. This strategy is ideal for long-term investors who have enough time to allow the lease to pay off the mortgage debt in full. 

A more opportunistic approach is to identify and buy assets in distress at a high discount and quickly resell them on the open market for an inherent profit. This strategy eliminates the long-term financial obligations associated with real estate ownership and also eliminates dependence on capital growth as the main driver of profits.

Each strategy carries its own risks, and investors considering adding real estate exposure to their portfolio should consider their ultimate goal, be it income, growth, or both, and look for investment opportunities that might achieve those goals.