Now-a-days,
the boom in real estate is increasing day-by-day. Having an open plot or a
villa or a flat is safe for future, we can sell it or use it further. It is an
asset which creates a value and a property. Buying and selling of lands or
properties or villas is a real estate.
Few buy and
own it, further sell it, which means they are investing money (Investors) to
invest their money and increase their income. Here they are owning the property
and they sell it once the value of property increases.
Few act as
mediators between sellers and buyers to gain commission. They try to
collaborate with more than one and they do not want to take risk for investing
an amount or they might have some other reasons like they might not have enough
money to buy the property etc.
We can see
this kind of realtors worldwide. Mostly the value of property is high in main
cities than villages because of the availability of facilities like roads,
transportation, power, water, Hospitals, etc are the elements which most of the
buyers check before buying the property. Also, we can see two types of buyers,
who want to buy the property with affordable prices and who want to buy the
property with high prices.
When we
compare stocks with real estate, real estate is the best and risk free to
invest. Real estate is a long term investment. But there are few risks here
too, they are bad location, lack of liquidity, unpredictable nature of real
estate market. Real estate involves and requires a lot of research, we might
not get immediate returns or results and it is not an asset that easily
liquidated and can’t cashed easily/quickly.
The longer we hold our property, the huge amount we can make
in few locations depending on demand and developments. Areas which surrounds
with higher facilities especially transportation like ORR, Airways and Business
hubs have higher demand, hence prices hikes in such locations.
As economies expand, the demand for real estate drives rents
higher. The benefits of real estate are passive income and tax benefits. Rental
houses, apartments, vacant land, commercial buildings, industrial, shopping
centers, and warehouses all offer their own variation of tax incentives. Passive
income is usually taxable but when we don't have money, we can leverage our
time and effort to create income streams that will grow into the future.
But be cautious with the scammers, there are chances of
scamming in real estate too.
Let’s take Hyderabad as an example:
In the real estate there are various types of layouts within
Hyderabad and its surroundings, they are HMDA, G.P. and DTCP.
G.P Layout – Gram Panchayat Layout
HMDA – Hyderabad Metropolitan Development Authority
DTCP – Directorate of Town and Country Planning
DTCP and HMDA have certain rules which are similar but DTCP
has different percentages when compared to HMDA. DTCP and HMDA are bit costly,
whereas GP Layouts are low cost ventures. Limits of HMDA and DTCP are, HMDA is
the limited, upto Hyderabad and DTCP is all over country.
Panchayats have the power to approve layouts and residential
properties within the boundary of their village. The rural development and
panchayats have been granted permission by the government to approve
layouts/residential properties that are within one acre of land within the
village boundaries.
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