Categories of investors in Real estate investing

Categories of investors in Real estate investing

Investments in properties are considered as one of the most lucrative investments. Money invested in properties or land will surely reap you huge amount of profits than expected if kept for longer years. Various options of investments are available within this. One can invest in land, plots, residential properties, commercial properties, residential flats and even in built-up areas. But before going for any real-estate investing you must have a basic idea of what the investment actually is.

Investments in real estate varies a lot one can invest their hard earned money in a lump-sum or else you can even make your investments in installments or loan based. Some investors believe an investment made in lump-sum is not of a good choice when compared with the installment based investments, whereas some investors object with this statement. They perceive that real estate investing through installments is a step for making loss or will not be able to gain high profits from the investments. While there are some categories of investors who assume that by whatever means you invest in properties the ultimate objective of investment should be for longer terms so that you will be able to achieve higher profits which is not possible in the short term of investment.

The perception and objective of each investor varies. Every investor is having his/ her own reasons to support their statement. In the first category of investors who invests in lump-sum their perception is correct with the logic of no need of paying any extra money to the third person (i.e.) interest rates paid to the bank. Thus they can enjoy their whole profits whenever they feel to sell.

In the second category of investors they state that if a real estate investing is done through installments it is much beneficial. Here they have applied the logic that it is of sure that we have to sell property in longer term. But will happen if the development takes place all of sudden and your possession in property is got cancelled then you have to bear huge loss. Thus here you can be saved with the third party who will take the responsibility of selling the property and take his money which is remaining and will return back the amount to you which is surplus. And thus the left over is the profit which you have earned by paying in installments. And in other case if the development is positive (i.e.) which is not taking place where your land or property has been placed, however it is taking place in within the square kilometers then it is a positive sign for you and for your land to reap huge profits for all.

In the last category of investors they have supported their statement stating, it does not matters by what means you have made your investments in real estate investing your objective of the investments should be to make profits which is possible only in longer term. Here development is least concerned for them.

By Daniel Rray

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