If you want to buy any property or planning to make real estate investment......then please read on.
Why you should consider purchasing land?
A survey recently reported that Land prices have risen 762% over the last 20 years.
It also state that there are strong reasons to own land & these are:
Development potential - especially where land borders settlements.
Lifestyle - ownership provides somewhere to live and fulfils an aspiration; 'to own a piece of India'.
Investment performance - driven by capital growth of farmland and residential property. Quality, location and timing of purchase are important.
Taxation advantages - land ownership potentially includes Inheritance Tax and Capital Gains Tax relief.
Income - reasonably secure, steady income for next five to six years from the SPS with the latest environmental initiatives offering the opportunity for additional income.
The advantages of real estate investments are :---
Land is real.
Unlike shares land is tangible - it can be visited, seen and walked on.
There is a limited supply of land.
It is easy to understand and seen as a solid investment.
Land is not open to accounting scandals and it is clear when property prices are going up (or down) and the reason for this movement.
It is a cheap way to invest in property
Why you should invest in Land?
"The greatest Investment on earth is earth"
Most people think investing in land is only for big-time real estate developers looking to buy large land for commercial development or the subdivisions of homes. What they don’t realize is that investing in land is one of the most sound investment strategies available today and is a viable opportunity for most investors, both large and small. So why should you consider investing in land, rather than an already improved real estate property like a single family home, apartment building, commercial structure or other improved property? Undeveloped land offers several investment advantages that can not be found in most developed real estate.
The advantages of investing in land…
Higher profits - Annual Return on Investment (ROI Analysis) Ground floor with less risk Superior financing terms Greater flexibility for maximizing value Simple investment management
Regardless if you are looking for a real estate property for investment purposes, or as a site for a future home; investing in land is proven to offer a safer and higher return on your investment than any other financial instrument available today. Traditional investments like stocks, bonds, bank deposits etc. over the past couple of years have seen average returns of 10-15%. In contrast, real estate and land investments have realized cash on cash returns of greater than 200%; with less risk.
Why Invest in Pre-Construction Planned Developments?
Real estate investors looking for “ground floor” land investment prospects are finding pre-construction planned developments to be the perfect opportunity. With the majority of land projects being in primary and secondary home locations, a smart investor gains the benefit of being in a desirable neighborhood location. With price appreciation of second homes rising faster many homebuyers are enjoying the fact they can have an outstanding investment while enjoying also great first or second home location to use for themselves and family. This marks a new and unprecedented era, as it is the first time in history we have ever seen this kind of significant shift in real estate buying patterns. As we are currently in the very early stages of this major demographic shift, the smart investors are taking advantage of this knowledge, purchasing now and have the peace of mind of a safe and reliable exit strategy when they want to sell. In addition, the smart investor will experience dramatic appreciation during the holding period while reducing their overall risk by focusing on real estate purchases.
Additional Reasons to Act Now…
Lock in low payments now. Act now while interest rates are at the lowest they have been in 20 years.
Little to no effort required (turn-key investment).
Save money by investing at today’s pricing. As more and more investors are taking advantage of these opportunities, the price points continue to rise, sometimes on a monthly basis.
Availability; the best opportunities available today are the ones that are typically gone tomorrow. When you hesitate, you could miss out on a one of a kind opportunity.
Invest now at pre-construction prices. The smart investors will purchase their property before all the amenities are in place. Amenities like roads, golf courses, schools, club houses, recreational facilities, nature trails, marinas, boat ramps, swimming pools, etc. all add value to the property. By investing now, you can enjoy pre-construction prices, which are almost always guaranteed to be below the selling point once the amenities are in place.
Are you tired of losing money in the stock market?
Fed up with low interest rates on your savings, money markets, and CD’s?
Cautious investors turn to real estate...growing interest in investment properties, partly fueled by the recent roller coaster ride on Dalal Street. We have solutions for those investors wary of the sharp ups and downs on Dalal Street. How about an alternative with some serious profit potential while reducing risk at the same time?
If you’re looking for safer, more predictable returns for your hard-earned investment dollars, you should strongly consider investing in real estate. A real estate investment can be a secure, profitable way to grow your money consistently and should be part of any serious investment strategy.
Why property is so much better than other investments?
- You do not need much of the purchase price in cash to buy a property.
- You can buy many more dollars’ worth of property more than you are paying for.
- You can massively increase the value of a property without spending much money.
- You do not need to sell a property to reap the benefits of any growth.
- You do not need to monitor your properties from the moment to moment like a hawk.
- Property prices tend to increase relatively smoothly and consistently.
- Property is very forgiving of mistakes.
- Property has exceptional tax advantages.
- The fluctuations of any one property relative to the national average are very low.
- It is incredibly simple to do better than the national average for property.
- It is simplest, most reliable, and most consistent vehicle known to convert even a little financial intelligence into a lot of cold, hard cash….
Real Estate Investment vs. Stock Market
Why the Real Estate Market Trumps the Stock Market.
Sure, you can make a mint from either stocks or real estate, but that doesn't make deciding where to invest any easier. And while all investments are cyclical, there's a reason sophisticated investors are becoming increasingly more comfortable with owning property.
Everyone knows someone who has made a good investment in property - someone who got in at the right time and bought low and sold high. However, the same can be said for stocks and bonds. It's not unusual for those in the financial services industry to have reports with "documented results" or testimonials from investors who have reaped significant gains through strategic planning and fortuitous market-timing. Still, there's an inherently large amount of risk associated with investing in the stock market and as smart investors will tell you, real estate, by contrast, provides a controllable, predictable source of wealth generation that affords a certain, well...comfort. That's because the stock market is a fickle thing unpredictable, intangible asset that has little, if any, tax benefits. Real estate, on the other hand, is far less volatile, has superior tax benefits, significant cash flow and a high degree of leverage. The comfort that comes from these attributes gives those investors whose comfort level lies somewhere between low and no risk an ideal investment vehicle.
Advantage #1: Tax benefits
Most of the tax benefits associated with investing in real estate are fairly straightforward. The first incentive - and one of the best - is depreciation that applies to a whole variety of investment properties, including rental houses, apartments, condominiums and commercial buildings. Depreciation is essentially a "paper loss" for wear, tear and obsolescence - and a big tax incentive because it generates fax savings with no out-of-pocket costs. Secondly, owners are entitled to many additional tax deductions such as property taxes, mortgage interest, insurance, maintenance and repairs.
Advantage #2: Cash flow
In addition to tax benefits, the real estate investor can also rent the property, resulting in monthly cash flow - something even dividend-paying stocks and interest-paying bonds usually can't match. The practical investor recognizes the benefit of investing $100,000 and potentially earning $170,000 over five years in real estate, versus earning only $60,000 in the same time with the same investment in stocks. In reality, the stock market does not go up every single year while real estate often does, so that the above comparisons are even more skewed in favor of real estate.
Advantage #3: Risk management and control
For decades, real estate has been the most reliable and dramatic wealth generator for millions of people - and despite the slump experienced in some recently booming areas, many parts of the country continue to experience price appreciation. Real estate markets with steady, solid growth present little risk to mortgage lenders, so it makes sense for them to loan money to investors on attractive terms. Not only does it make sense, but they are actually anxious to loan it to you. And while banks may also loan money for other purposes, they are more willing to loan it to real estate investors because of the safety of the collateral. If for some reason the investor doesn't pay, the bank still has a physical asset that has significant value. Real estate will never go to zero (as many stocks have) because it is in limited supply, has universal demand, and is constructed from materials which are increasing in price, such as lumber, copper and stone. Additionally, real estate investors have more control over their investment than they would over stocks. Although stock investments have potential for lucrative returns, they are unfortunately afflicted with volatility and suffer unpredictably sharp price fluctuations that often have nothing to do with the quality of the company or the competence of its management.
Advantage #4: Leverage & appreciation
Housing is a universal need and with labor and building materials becoming more costly and populations on the rise, real estate prices have nowhere to go but up in certain markets over the long term. With mortgages on sale at the lowest interest rates in the past 40 years, it makes sense to invest in real estate. By stocking up on these bargain-basement mortgages (that are actually paid back by the tenants' rent), investors can maximize leverage and thereby accelerate wealth generation. Real estate in many areas of the country is appreciating at around two digit percent per year, plus the added bonus of tax benefits.
Advantage #5: Early mortgage payoff
Rent a property for greater than the sum of the monthly expenses and you've got positive cash flow. Use the income to enhance your lifestyle, pay off debt, or re-invest in additional properties. This is when Rent-to-Value (RV) Ratio becomes critical - a quick, rule of thumb evaluation technique that can instantly determine whether a property makes good investment sense.
Real Estate Investments In Indian Perspective
The real estate story in India is growing bigger by the day as it continues to receive an ever-increasing influx of funds. It is expected that US$ 10 billion of foreign direct investment (FDI) will be injected into the real estate sector. Merrill Lynch forecasts that the Indian realty sector will grow from US$ 12 billion in 2005 to US$ 90 billion by 2015. Prominent global funds including Carlyle, Blackstone, Morgan Stanley, Trikona and Warbus Pincus are sitting on a total corpus of US$ 12-15 billion, say experts.
Retailers in India--the most aggressive in Asia when it comes to expanding their businesses--are creating a huge demand for real estate. The Jones Lang LaSalle third annual Retailer Sentiment Survey-Asia revealed that India topped the chart with 45 per cent expanding rapidly followed by Greater China at 27 per cent and other South East Asian capitals at 6 per cent.
Eminent global real estate business houses like the Philippines-based Ayala, and Signature group, Och-Ziff Capital, EurIndia and Old Lane from Dubai are keen on sizeable investments into India. And, while FDI from the UK is also likely to pick up in the next few months, investors in the US, Israel, Malaysia and Singapore want to be a part of the India story.
Australian real estate consultancy major LJ Hooker, with 700 odd franchisees in South East Asia, has opened its India account with a franchisee in Bangalore.
US-based global investment bank Goldman Sachs and Unitech, the largest listed real estate company in India, will set up a special purpose vehicle (SPV) with a corpus of US$ 208.7 million for investments in the real estate sector.
DLF Ltd is forging a 50:50 joint venture with Nakheel, a large property developer of the UAE, for two integrated townships in India at a whopping investment of US$ 10 billion.
Zurich-headquartered Credit Suisse, the world's leading financial house, is finalising on a US$ 1 billion fund to invest in India's real estate sector.
Dawnay Day International, the US$ 10 billion UK-based investment company, plans to invest US$ 1.5 billion in Indian real estate in the next two years.
Real Estate Investment In Nagpur
Nagpur Real Estate is in news because of the the investments by NRI is here. More and more NRI's investing in Indian tier II cities. The intense demand for residential and commercial properties coupled with the high buying power of NRI’s is pushing up prices beyond a reasonable limit in Nagpur. Property developers in the city are making hard cash in the wake of number of real estate deals that are waiting to be struck soon.
Nagpur Land Appreciation Graph
Nagpur, a sleeping tiger
Encouraged by the booming market, several developers and brokers are also in a look out for tapping a large base of NRIs, who have their roots in the city or region. Thousand of deals struck each day. Of all, the main ones are for vast stretches of agriculture and non-developed agriculture land. Most of NRI property buyers originally belong to Nagpur, but others are also keen to get a chunk of land in the city.
NRI investments in Nagpur are expected to push major developments soon. The current growth is already contributing to the price rise.
Realty prices in Nagpur are going through the roof on speculative buying as high net worth individuals including non-resident Indians are believed to be fueling the rise. Brokers say that huge tracts of agricultural land around the city have been purchased by parties who haven't even seen the property. Such deals are being done on the Internet and registered through a power of attorney arrangement with the broker.
The stamp duty collected on registration of land sales in rural areas of the district has also shown a steep rise. The duty collected from the Nagpur rural area from April 1, 2005, to March 31, 2006, was Rs 24.9 crore as against Rs 18.6 crore collected in the previous fiscal. The state government has already collected a whopping Rs 16.6 crore in the first five months of the current financial year from April 1, to August 31, 2006.
Real estate agents say this clearly demonstrates that vast tracts of agriculture land has changed hands. According to them, most of the money is coming from outside Nagpur. There are some big developers who are planning new townships such as the Satyam Group. Local builders too have purchased large areas of land for constructing housing complexes outside the city.
Huge amounts are also being pumped in by NRIs who don't necessarily have their roots in Nagpur. In dollar terms, the amount isn't much and investors see a lot of potential in tier II cities such as Nagpur.
There is no farm land around the project demarcated area which is available for sale. Some real estate funds from India and abroad are also said to have made inquiries about land prices here and this too has added fuel to the fire. Builders, hoteliers and corporate houses too have made surveys.
- Map of speedily developing area of Nagpur
- View Video Presentation On MIHAN
- Statistical Information about Nagpur
- Geographical Information About Nagpur
- Read About Nagpur On Wikipedia
- Check Out The Latest Press Release On Developments In Nagpur
