Real Estate Investment For Early Beginners

By Author: Ashil Patel
Total Articles: 33
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Real estate investment is a great idea and one can begin very early in life. In fact the latest scenario finds many young adults investing their lot in real estate. Although beneficial, this is not without its disadvantages too. Let us see how you stand to gain (or lose) as a young investor.
The hurdles of beginning early
• Money Matters: Most young people live from pay check to pay check and sparing that much cash may be a difficult proposition. Disposable income is rare at this age which makes it difficult for any kind of investment.
• Little experience: Investing may sound like a good idea but when experience is lacking it is difficult to gauge where to begin from.
• Other appealing stuff: Most youngsters live for the moment and would rather spend on digital items and trendy clothes than on real estate investment.
• Poor credit: For beginners establishing a good credit history is next to impossible and getting a loan is quite out of the picture.
• Banks shy from giving loans: On what basis will a bank give a loan to a person who has just started out in life? With no credit history ...
... to back you, this becomes more difficult than you think.
Begin early with a few simple tips
• Take small steps: Rome was not built in a day and the same goes for your real estate empire. Begin small and wise. Spend on sure shot ventures and small enterprises.
• Residential only please: Although offices and commercial complexes seem to be minting money for investors, making losses on these investments is also a great possibility. Residential properties are a safer bet. One cannot lose out much on these and profit chances are high.
• Home ground: Mumbai or Delhi has lucrative real estate markets but again the risk factors are also high. For any early beginner, investing closer to home is the best option as you know the home ground well and are aware of what is selling.
• Calculate your wins and losses: While thinking in terms of expenditure, do your calculations well in advance. You may be thinking of the property prices where as the investment could be quite high earning you a low profit. Invest only as much as you comfortably can.
• Easy Finance: Get home loan to finance for your house even if you stay with your parents. The interest rate on home loans is subsidised and it is always less than the inflation. Also you can get tax benefits.
• Invest in New projects: New projects have a very low booking amount and you can pay in instalments. Either with subvention schemes or with good payment terms you can start owning a property faster than you can think.
• Take advice from RE/MAX: When you are young and low in experience, then the best bet would be to take services of a company which gives you the value despite your lack of experience. With a company like RE/MAX you are assured of making the right investments. You can even take advantage of training sessions by experts and in their guidance study the market well. After all nobody in the world sells more real estate than RE/MAX.