It is important for you to have purchasing power for investment, it is a reality when talking about India, 80% of the people cannot invest in real estate. For us, buying our own home is one of the greatest achievements of life, far from investing. If you understand today’s reality, even a person earning 50000 / – month in metro cities cannot buy a house for himself, so the property market has become expensive.
So here we will talk on both the problem, if you are able to invest then what should be the investment strategy and you do not have the investment ability, yet you want to invest in the property market, then we are here to elaborate on it. Will tell
To invest in the property market, first of all we need to know what will be the investment amount and what is the rate of return and will be mixed. For this, we will take a look at the property market and see what is the deal for investment and how to invest.
What is Property Market? –
When we took up writing this topic, we saw that there is basically a slight difference between the real estate market and the property market. We usually call the real estate market as the property market, but this interpretation of the property market is a very big explanation, which includes real estate, but other movable and immovable property also comes in it.
The property which gives you return through rent or interest in return for your investment, whether it is movable property or immovable property is called property. Real estate This property is a part of the market in which it comes called immovable property and in return you get income through production or rent.
Investment of stock market, investment of money This property is considered a part of the market, it means movable property comes in the property market. Explanation of Property Market All types of assets that give you income are called.
What is Real Estate Market? –
Our main topic is real estate market so we will know what is real estate market and how it works. As we have seen the explanation of the property market, similarly the real estate market is the market of real estate, which is regulated by the government by making laws and its value is based on the demand and supply, which the government keeps an eye on if someone misuses it by its dominance. Couldn’t do it
The value of a property in the real estate market is determined by its utility and area, which is governed by demand and supply. Where the demand for a property is high, its value is high and where the demand is low, its value is low. In this also we see this division of commercial property and personal use property, whose value is different.
In today’s era, there is a recessionary environment in real estate, but still the property price is beyond the capacity of the normal investor, there are many reasons for this which is not the topic of today. But we will see further on how to plan investments even if your purchasing power is low and how to choose investments that give high returns.
Inflation – Taxes & Property Market –
When you buy or sell a property, first you have to pay the stamp duty to the government, if there is a plot of open land then you have to pay for its security. Before buying land, you have to spend money on experts to check whether the property has a clear title or not.
Whoever sees the property takes his commission, he takes commission from both the parties, which increases the cost of the property. In future, if the property purchased does not give you good returns, then inflation keeps on hurting your investment.
Therefore, investing in real estate in the property market is as simple as it looks, it is not necessary to have a lot of knowledge. Ordinary customers fail to invest, but big corporates become quite rich, because of the flaws in the tax system, they are exploited by the experts of the big companies, which the normal investor does not know, so both these factors are used to invest in property. Always keep in mind while doing this.
How are property rates decided? –
Basically property rates in real estate are based on demand and supply in an open economy, but sometimes the prices are artificially lowered and higher. Therefore, the government prepares regulation by making many laws so that the property market is kept balanced.
The property market is also heavily dependent on the Reserve Bank’s interest rate policy as expensive loans increase the value of the property and falling rates bring down the value of the property. To pay the government stamp duty, the government fixes the rate of the property, which is different from the market value, but this property is the guide rate for the market and what will be the right price.
Property rates are also fixed on the area in which this property is located, because the rates that are in Pune are not in Mumbai, it decides the demand and supply of the market, so it is very important to do all this exercise while buying a property.
Investment in Open Plot –
Buying open land in the real estate market is the most risky thing because most of the frauds are seen in this practice at the ground level. This investment, which has a lot of purchasing power, people invest in it. In this, political and bureaucratic business minds and corporate companies who can make property clear title by spending a lot of money with the help of experts.
In open land dealings, nowadays, most of the sellers are the owners of hereditary land, who sell the land for the need of money and the financially capable people who buy the land buy the land. The future cost of the land would have been the buyer’s profit, which not everyone can invest in.
Plowing land has the highest value, but in reality, farming is a loss-making business, but one who has agricultural land is a status symbol in society, so people buy most of them, unlike corporate houses that walk on rent. Prefer and make such investments where it is necessary.
Investment in Flat or Bunglow –
This investment is safer than investing in open land, but for this too, a lot of investment has to be made in today’s era and very few people of the society can make such investments in India. The reason for this is that this investment is very big but its returns are very low, the main reason for buying such a property is the increasing price in the future.
That’s why ordinary investors cannot invest in it, this investment is done by people whose income is very high, whose percentage we have seen above. These investments are beneficial in America and European developed countries, the most important reason being that the interest rate is much lower than in India, so that they can get the benefit by giving property in rent, but in India it is not possible today.
The loan we take for these properties, whose installment is much higher than the rent it gets, so this option is not beneficial for the general investor, and those who invest in it, they invest to save tax.
Investment in Shop & Offices Property –
Property investment is considered to be the best medium for investors since last 20 – 30 years, but even here even a normal investor cannot make this investment. For this, those whose income is very high, they give the highest priority in such investments.
This medium of investment is considered to be the most preferred property investment in the property market, its important reason being that this property gives much higher returns to the investor every month than other property investments. This investment is very popular in metro cities and gives a lot of income.
Investment in Commercial Property –
The property which is bought or sold by the company or for the company is called business property and it is shown mainly through professional tax. The tax rate of these properties and its value is higher than normal properties.
Generally, we consider the purchase of a shop as a commercial property, but many properties are personally invested, which we cannot call commercial property technically. It is generally a company which is a registered company according to the Companies Act, whose purchase and sale is done through this legal entity which is not a direct person.
It is considered to be the best investment in property investment because the company removes the shortcomings of the government’s tax policy through experts and generates maximum profit or return. But looking at today’s corporate trends, companies like to take property on rent more than investing in cities like Mumbai, Bangalore.
Property Market & Government Laws –
When investing in the property market, it is very important to see the status of property laws in India. We see many times that after the purchase of property, many disputes are created in the property. Due to which our investment risk is created and we suffer loss, so it is important for us to be aware of the law of property market.
Importance of search reports, laws like RERA and the time taken for disputes in law and order are very important to keep in mind while investing in any property. Many times, which documents are necessary for clear title, people do not have this information and sometimes some things get skipped in banks too which creates problems for you in future.
That’s why most of the people give importance to the ready made property more than the open property, which involves a lot of work risk and in today’s era of internet we can see the status of any property online and we can get the developer information by visiting the website of RERA.
Digital Platform of Property Market –
Earlier property agents were companies and agents for property purchase in the traditional way. Digital marketing has changed this concept and has simplified the property market through mobile applications and websites, so that today trusted companies in the market are able to connect the customer and seller. works.
Due to the digital market, the scope of the market has increased and you can find online which property to buy sitting in any corner of India. Due to which more choices are available for investment. But the property market of every area is still very different, for this a lot of research is necessary.
The one we are writing this article is also a digital platform of information, which we all take advantage of, while investing in it, it has become very easy to get information, which helps a lot in making our investment safe.
Robert Keiosky, a renowned American property market investor and author (Rich Dad Poor Dad) believes that investing in property requires understanding the assets and liabilities. Most people consider their house as property, in reality the property is the one that gives income.
A property which does not give income is a liability and it is very important to keep in mind while investing in the property market how much inflation and tax are going to be spent. We have seen that in the property market in India, the property agency is run very unprofessionally, due to which the client hesitates to invest in the market.
It is expected that some changes will be seen in this due to the digital property market. We will write a separate article for how a normal investor should invest, so that we will understand its nuances, at present it is a better option to invest in group property by doing legal contract.