Property Investments - Bespoke Services
Property investments and real estate asset management are two of our most important services provided to clients. Real estate investment is a critical topic for any investor worth his salt.Real estate or property investing not only means buying and selling of properties to make a profit BUT also means understanding the whole science behind it.
Real estate investments are generally capital intensive and the timing of buying a certain property, especially if you are investing, has to be spot on. Real estate as an asset is not as easily liquefiable as other assets such as shares, stocks, bonds, etc. It is therefore very important to understand real estate investment completely before actually investing in properties.
Types of Property InvestmentsBroadly speaking real estate investments are done for the following reasons :
Capital Appreciation : It is common knowledge that real estate prices increase with the passage of time since land as an entity is limited. The percentage of increase does vary, it could be slow during certain time periods, could be very high during other time cycles, it could also dip & go into negative on certain occasions. However, as a thumb rule, real estate investments are always considered profitable as a long term investment especially for capital appreciation. So it is not unusual to find millionaires of a current generation actually having hugely profited from the real estate investments made by their forefathers. In fact real estate investments are a great hedging tool against inflation (especially for the long term).
Real estate and property investments were not recognized as proactive way of making money erstwhile (although a select class did it knowingly as well as by default). The modern era, however, has brought real estate investment to the fore as a great source of making profits. There are all kinds of property investment options available, long term, short term, investments with part payments, complete payments, etc.Real estate and property investments were not recognized as proactive way of making money erstwhile (although a select class did it knowingly as well as by default). The modern era, however, has brought real estate investment to the fore as a great source of making profits. There are all kinds of property investment options available, long term, short term, investments with part payments, complete payments, etc.
Property Investments for Rental Income :
Real estate investments are indeed a very good source of recurring rental income. Especially if you have a good capital base, with smart residential or commercial property investments, you can create a long term recurring income source for yourself and your family. Not to forget that the property is also appreciating simultaneously in terms of capital while you are milking the rentals.The trick is to find the right property, a good tenant and of course a good amount of rent that would justify the amount invested in the property.Realspace helps you in achieving all the above objectives by using our vast data base of property investors, property owners, property agents having lucrative property deals to ensure that your property investment fetches a good rental income for a long period of time.Avoiding Long Term Capital Gains :
Real estate investments are also done by people who have sold real estate assets and have made profits. If they fall in the long term capital bracket, then they can reinvest the money in a different property and save a substantial amount of money in terms of taxes.Tax Benefits :
A property investment done by availing a housing loan helps one save in taxes. The interest paid towards the home loan reduces the tax liabilities of an individual. Thus the benefits include savings on tax as well capital appreciation of the property and also rental returns in many cases.Leverage:
A very strong reason to invest in property, especially in this age of easy loan procurement, is leverage.
In case a real estate investor utilizes his own funds to acquire a property real estate asset worth Rs.50 Lacs and the property increases in value by Rs. 10 Lacs in a year, then the property investor has made a return profit of 20%.
However, if the property investor has availed a loan facility of 90%, only Rs. 5 Lacs would be required as his own contribution as the rest would come from the bank.
In the second scenario the property investor's own investment of Rs.5 lacs has actally earned hime a profit of Rs. 10 Lacs which is 200% return profit. Even after deduction other incidental costs, bank interest charges, the returns would be close to 150%.
Realspace has its own home loan department and we are tied up with the leading banks to provide you with the best home loan and commercial loan options. Our loan service along with our real estate investment services helps you make the best property investment choices effortlessly.
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