Investing in Indian Real Estate » residential real estate http://www.digeratidesignstudios.com Tue, 07 Feb 2012 06:39:58 +0000 en hourly 1 http://wordpress.org/?v=3.0.5 Real Estate http://www.digeratidesignstudios.com/real-estate/ http://www.digeratidesignstudios.com/real-estate/#comments Sat, 19 Dec 2009 21:58:40 +0000 admin http://www.digeratidesignstudios.com/real-estate/ Author: Economybr
Source: articledashboard.combr
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Real Estate can be categorized into two types, namely, Residential Real Estate and Commercial Real Estate. Residential real estate market is basically concerned with the construction of the buildings and homes meant for residential purposes. On the other hand, Commercial real estate market deals with the construction of the buildings and apartments specifically meant for official and commercial purposes.

A high degree of correlation has been observed between the growth rate of both economy and the Real Estate. Another observation highlights the fact that at the time of economic uptrend the performance of the real estate sector remains phenomenal. But at the later stage of the boom period, the commercial real estate sector jumps to the fore and performs extraordinarily. Thus, it has been empirically proved that the commercial real estate market reacts with the boom but with a lag.

Some of the aspects that help Real Estate

Economic growth of a country.
Money trickles down to all sections of the people.
The fruits of the economic growth are first relished by the urban society. Thus, a huge migration of people are observed from rural to the urban places. This migration leads to the increase in demand for more residential places.
Economic growth gives enhanced profit to the Corporate sector. Large parts of the profit is generally used for enlarging the business. Thus, along with increase in business opportunities, the demand for office spaces increase and consequently the commercial real estate market flourishes.

Now, let us visit the market conditions of this sector in some of the important countries.

Real Estate Market in USA

In the year 2005, this market has seen a phenomenal rise. Los Angeles has itself observed a phenomenal rise in the prices of residential real estates amounting to above 14 % during the five year period between 2000 and 2005. But in the year 2006, this market has seen a fall in their sales. This excess supply has caused glut in the market with unsold new houses piling up. Current condition worsened when the mortgage market panicked and the stock market evidenced heavy decline in prices of the real estate companies. Thus, the housing market has seen a declining slope in the year 2006 which is continuing till date. But this fall is partially compensated by the phenomenal rise in the commercial real estate market which has increased at the rate of twelve percent in the financial year 2006.

Real Estate Market in India

This sector is passing through a booming phase during the present time. According to the CEO of a real estate development company, Dun Bradstreet real estate industry in India is increasing at a break-neck speed of around 30 %. This industry is contributing around seven percent to the national income of India. The total amount of loans forwarded by the financial institutions including the banks has seen a phenomenal growth of around twelve thousand crore rupees between the year 2005 and 2006./pbr
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]]> http://www.digeratidesignstudios.com/real-estate/feed/ 0 The Truth About Real Estate Investing – Is It Right For You? http://www.digeratidesignstudios.com/the-truth-about-real-estate-investing-is-it-right-for-you/ http://www.digeratidesignstudios.com/the-truth-about-real-estate-investing-is-it-right-for-you/#comments Sat, 12 Dec 2009 21:58:48 +0000 admin http://www.digeratidesignstudios.com/the-truth-about-real-estate-investing-is-it-right-for-you/ Author: Dr. Scott Brown, Ph.D.br
Source: articleage.combr
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You have probably been hearing, seeing and reading that real estate investing is the best thing since sliced bread. There are many late night cable television infomercials spewing out sales pitches for courses that teach you how to buy residential real estate no money down or for next to nothing. Furthermore, polished pitch men on the advertisement emphasize that it is so easy that anybody can do it. They smugly show you that it is simple as they pencil out on the back of a napkin how you will supposedly make a fortune in real estate. Then these real estate investment course promoters show actual interviews of people who have reportedly made gobs of money with the course system.
Although it is true that fortunes can be made in real estate it is actually more likely that it will be the guru owner of the real estate course than you! The reason is that real estate investing is a lot harder than most people realize. When you buy, rent, and sell real estate as opposed to stocks you are dealing directly with people and there is not organized exchange to keep things standardized. Dont forget that courts see it as their duty to protect the shelter of families even if they are non paying renters who are total deadbeats. Another problem is that many contractors who do odd fix up jobs for real estate rehabbers are drifters with as many personal and financial problems as bad tenants. They damage houses and are down the street as soon as they get a little cash out of the hapless real estate investor.
It also takes many years to learn how to properly assess value in a town or neighborhood and get the required experience in real estate closings to not have the big profits you initially think you see in a deal leak out. The key point of this edition of the Wallet Doctor is that real estate investing is a business. Like any other business it requires constant dedication and education. If you work full time it means losing your free time to your rentals and rehabs. If a property doesnt sell or if the tenant doesnt pay you will have to lose part of your salary to cover the mortgage. You should enjoy your regular full time job because you selected it. If you prefer cookouts and trips to the beach over collecting rent and repairing your residential real estate investment then the stock market is a better place for you.br
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]]> http://www.digeratidesignstudios.com/the-truth-about-real-estate-investing-is-it-right-for-you/feed/ 0 Real Estate V. Stock Market : the Heavyweights Champ ! http://www.digeratidesignstudios.com/real-estate-v-stock-market-the-heavyweights-champ/ http://www.digeratidesignstudios.com/real-estate-v-stock-market-the-heavyweights-champ/#comments Fri, 27 Nov 2009 22:01:03 +0000 admin http://www.digeratidesignstudios.com/real-estate-v-stock-market-the-heavyweights-champ Author: Luigi Frascatibr
Source: articleage.combr
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There are out there essentially three places where you can stack up your hard-earned money: the stock market, real estate and under your mattress. If you decide to put the money under your mattress, beware: it will fruit no interest and, hence, it wont grow over time. In fact, it will devaluate.
Competition between Stock Market and Real Estate as the top source of investment returns has been going on since the mid 1960s. Typically the Stock Market was seen as the place to invest and Real Estate as the place … well, to live in. But since the mid 1990s the old axiom has changed more and more every year, and today it is entirely revolutionized. The purchase, holding, renting and reselling of real estate assets – especially residential real estate – is now the investment of choice for the majority of investors. Money is pouring in as a direct and proximate consequence of low interest rates, which favor mortgaging over deposits and low-risk asset holdings over high-risk speculative stocks. Demand for residential real estate throughout all urban areas in North America – and to a lesser extent Europe – has gone through the roof. This affects especially condominiums and townhomes located well inside urban cores, but it extends to single-family assets into suburbia just as well. Real estate has become the psychological equivalent of gold, historically considered a tangible, safe store of value.
Tangibility of assets is, in fact, one of the primary psychological reasons of this financial revolution. Given the choice between the purchase of a piece of paper representing the share into a far-away company over which the Investor has no control, and the purchase of four walls and a ceiling that the Buyer can see, touch and paint, the vast majority of consumers today are not going to hesitate for one second : theyll take the latter. But there is also a very important practical reason: availability of financing. Scandals have scoured both Stock Market and Real Estate circles, but whereas scandals in Real Estate typically have affected one or a few Sellers and one or a few Buyers, scandals in the Stock Market have affected millions of Investors. Lenders, as a result, have become somewhat leery to lend for the purchase of stocks and bonds and are much more comfortable with real estate market values. Banks lend on appraised values, and it is far more likely for an appraiser of a residential condo to determine its true market value with a high degree of accuracy than it is for a stock analyst to evaluate the books of a corporation with the same degree of accuracy. Afterall, it can be said that House A and House B have sold for a certain price in a certain neighborhood so that it is reasonable to expect that House C will sell for a similar or equivalent price in the same neighborhhod. But it is more complicated to apply the same reasoning to Corporation A, B and C because variables are too great: location, number of employees, performance, market sector, technology, politics, taxes and all the rest. Therefore, a financial institution will lend money to a qualified Real Estate Buyer more readily than to a qualified Stock Market Investor.
The type of Buyer has also changed. With the advent of the internet and all other technological advances, Buyers today are more knowledgeable than ever before. As such, they want to see through things thoroughly and, once again, it is easier and preferable for them to determine by themselves whether they like a piece of real estate than it is to believe to a Stock Broker or analyst. More than ever they want sound advice and hot tips, and there is no question that those they can get from either a good Real Estate Agent or a good Stock Broker. But what the Stock Broker cannot offer is a tour of the company. A Real Estate Agent, on the other hand, will show them the house.
And, finally, population growth, density and age are other important factors in todays prevalence of Real Estate over the Stock Market. For instance, here in the Greater Vancouver region population is expected to grow 58 percent to 3.3 million people in the next 25 years according to the Urban Futures Institute. Thats 1.2 million more people than are here now. The Institute reports that the Baby Boom generation now makes up about one-third of the population. Their aging will result in a surge in the over-55 population of 146 percent by 2030, and that many baby-boomers today are beginning to look towards their retirement years and golden age as a period of calm, enjoyment and relaxion – free of the continuous buy-and-sell hustle typical of stock exchanges everywhere. They are more and more beginning to question Donald Trumps make-it-or-break-it philosophy for a more solid and long-lasting approach to the management of their own personal wealth and finances.
Luigi Frascati
luigi@dccnet.com
www.luigifrascati.com
Real Estate Chronicle
Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He is the author of the Real Estate Chronicle, his weblog published online. Luigi holds a Bachelor Degree in Economics and has been practising real estate for the past eighteen years.br
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