People usually relate investment in the Indian real estate sector with property purchase but this is not right as the sector has come a long way. Thus, there are several options beyond buying immovable assets and this has led to redefining the tips to invest in the Indian real estate. So, if you are also one of the investors then go through this blog and find out the tips to invest in real estate without purchasing a property.
1. Expert Speak
The industry experts feel that are out of many REIT is the most trusted real estate investment option and this is going to change the dynamics of this sector and the concept of sponsorship to assets via trust and investors is the main reason behind this expectation. The experts also feel that the real estate mutual fund is also an option to consider as it offers timely earnings and appreciation. Along with these two, real estate wholesaling is another option for investment in this sector as it ensures yielding of the handsome amount as revenue.
2. Invest in REIT
The Real Estate Investment Trust is a firm that allows the prospects to make equity investments in the commercial real estate market. Established in 1960, this firm official entered into the Indian Real Estate sector in March 2019 with the Bengaluru-based Embassy group who launched the first IPO in the country. In this process, a bunch of people invest in the commercial real estate and this investment is made on a large-scale. The Real Estate Investment Trust offers a minimum of 7-8 percent annual return on investment. The investors also hold shares in REIT and yield dividends, depending upon the performance of the REIT investments.
3. Real Estate Mutual Funds
This is similar to the regular mutual funds as here also the investor owns a particular share in the firm and the whole fund is owned by the company. However, here you can either earn dividends or share appreciation. The Real Estate Mutual Funds majorly invests in REITs, real estate stocks, and direct purchases of residential, commercial and industrial properties. The earnings from this concept depend upon several factors like demand and supply demographics, market conditions and interest rates.
The Real Estate Mutual Funds is a smart option for investment in real estate especially for those who don’t have sufficient funds to buy a property in major cities like Delhi and Mumbai where the unit price is too high.
4. Real Estate Wholesaling
This concept is completely new for many investors in India but it is hugely beneficial as the person can venture into the Indian real estate sector with a small amount of money. In this process, the investor is called as a wholesaler who goes into an agreement to purchase a property that is believed to be underpriced. This property is then sold to a regular buyer and the investor gets the understanding of property business and also polishes his/her negotiation skills. Most importantly, the investor yields revenue form this transaction that is commonly known as the fee attached to the deal and usually this amount is a portion of total the property cost.
5. Online Investment
This platform allows the investors to put money on multiple property options such as residential and commercial. The prospect can under various proeprty segments with minimum fundings. The concept of Online Investment is perfect for those who can’t leave the investment in the middle or can postpone the same.