Real estate investments


INTRO:

Since prehistory, men have looked up to the powers of their rulers and aspired to own a piece of land where they would set the rules, thus the industry of real estate was born. Real Estate is among the most rapidly growing businesses of the 21 st century. It is said about real estate that it is a business that rarely gives its investors a loss as the value of a piece of land increases day by day. If you are looking forward to investing in real estate, you are in the right place. 

Long term investments:

Even though real estate may seem like an easy way to invest your money and get a profit from it, yet it takes for the property to increase its value. It all depends upon the rate of globalization, the population of the country you are investing in, and the geographic and strategic location of your property. If you invest in buying a piece of land in a country where the population density is very high, your asset will turn into a profit very quickly. Similarly, if you buy land in an urban area, it has more potential to give you a profit then one in a rural area.



Short term investment 

            When you are talking about real estate investment, mainly we have two types of investments one is long term and the other is short term. Long term real estate investments have been already discussed, now we talk about short term investments in short term real estate investments these investments are for a short period. For example, if you buy a property in a commercial area you can get a high profit by reselling it in a short period.


           Short term investments are very common in real estate businesses because you need not wait for very long within a few months or weeks you can get a high amount of profit.



Time value of money

           We all know the value of cash decreases with time, to make your savings more valuable, and to make assets for yourself investing in real estate is the best option. Now if you invest in real estate the value of your money increases with time. Let's take an example of a businessman if he doesn't invest his money and puts all his money in his bank account the value of his money decreases and there is no benefit on the other hand if you invest your money in real estate you can make handsome amount from it.



Assets depreciation

          First, we need to understand what assets depreciation is? The decrease in the value of your asset with time is known as depreciation. Here we talk about the real estate assets depreciation. In real estate businesses, we have different types of investments.


Investment in plots 

Investment in buildings, shops, or hotels.


            In this, we discuss 2 main types of real estate investments in which depreciation of assets occurs. First, come to invest in plots in this form of an investment your assets would not depreciate because in a simple plot you have nothing to spend on maintenance. All the assets depreciate except land.


             Then we have real estate investments in buildings, shops or hotels, etc. in the assets of this investment depreciates with usage over time because we know your inventory and buildings need maintenance. Firstly it needs maintenance costs and secondly, the assets depreciate.


Safe investment 

          Real estate investments are considered as the safest investments in the whole world because of many reasons but some of them are the value of your real estate investments increases with time and if you invest in a land they didn't depreciate also there is no maintenance cost. 


             People also say that there is no loss only profit and profit but jokes apart the chance of risk in these sought of investments is quite low as compare to any other that’s why people prefer to invest in real estate instead of any other. 



Summary:

 Real estate is one of the most valued and loved businesses all around the world. The knowledge required to invest in real estate is minimal and the output is high. Real estate may take a while to generate a profit yet it certainly gives one a profit and avoids a loss. According to various surveys, real estate is among the safest businesses one can do.