Features of Real Estate Investments

The top most benefit of real estate is that ensures consistent total returns which are a cross of income and growth in capital. The income returns from the real estate funds is directly linked to the payment of rent subtracting the operating cost of the property and outgoing mortgage or financial payments. However if you lose tenants there comes a time when don’t have enough funds to cover the building operations cost and so it is essential you keep the property as occupied and full as possible. The capital appreciation of the property is ensured by having the property appraised. In case the appraiser feels that the property would sell for more than what you bought it for then you have hit the correct place by achieving positive capital return for real estate fund India.

Other characteristics of real estate investments are:

-No fixed maturity

Unlike a bond equity real investment has no maturity date. This feature of real estate allows the an owner to buy a property, utilize it to the fullest, execute your business plan and then dispose the property whenever you deem it is right.

-It is tangible

Visit your property, talk to your tenants and show it often to your family the real estate funds ensure you complete tangibility. Because of this feature you can have a physical control over your property and investment. In case you encounter a problem you can always try fixing it.


 -Needs to be managed

Your physical property requires a degree of management. Address the complaints of your tenants and take care of the landscaping. Also cater to the need of renovation when the building starts to wear out.

-Low on liquidity

Except for real estate securities no public exchange is available for trading. This trait makes real estate selling difficult since the deals need to be privately brokered. It is for this reason that there may be a considerable time gap when you decide to sell the property and the time when it is actually sold

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