Saturday, January 29, 2011

Real Estate Investment and Its Potential Disadvantages by Ravinder Tulsiani

Real Estate Investment and Its Potential Disadvantages by Ravinder Tulsiani

There are also many disadvantages to the real estate investment. These disadvantages can be easily taken off, if you have an insight about the limitations of real estate investment and what can be its short term as well as long-term repercussions. The basic disadvantages attached to any type of real estate investments are:

Taking Wrong Decisions

People going for the real estate investment property take decisions in haste.Make a firm decision when you go for purchasing your first real estate property, is just not easy man. If you are swayed by emotions, you will be ruined. Yes, I say RUINED! People do get broke, where they make decisions not from mind, but from their hearts. Objective feelings can get you the good real estate deal, and you ought to know this right from the beginning. Subjective actions will not land you anywhere. will give you first hand practical information on how to go while purchasing your first home. The way I did it!

No readily AVAILBLE Liquidity

With your real estate investment, you need to know one thing straight, and that is you simply cannot aspire hard cash immediately. You have to wait and watch the market movements and other socio-economic and politico economic factors before selling your real estate property, like a mall or your home. Instead, you can always borrow a sum of money against your property! But! Hey! Do you really want to go for borrowing?

Wait for Long

Real estate investment is something that gives you delayed returns. You have to be patient enough to wait in order your real estate property gets appreciated enough, and that can give you amazing yields. It is one investment that can even take a decade or more to give you high returns. In fact if you want to go for some fast returns, try thinking of investing in something else, such as information technology business, BPO etc.

Eats away your TIME and ENERGY

Real estate investment can get you real fatigue. It is a lethargic time consuming process that makes you feel almost laid back. You need to plan and have those instincts to get going with your property. You will learn more on about making you real estate investments more time efficient in later part of the chapters.

A Risky ADVENTURE to Ride

Investing in a real estate property can be a risky and costly event… Hmm, if you are not prepared before, you will make losses. Not just losses but, but you will become a pauper. Remember, as I said in my earlier statements, Real estate market is speculative. You never know, where your investments make you land. Just play the right way. The real estate strategies given in the book can show you the right path and you will be riding up and safe.

No Stringent Comparison Methodologies

Real estate market is variable. The price of two real estate properties can vary a great deal, provided you keep other factors such as time and location, constant. No two real estate properties can have exact. There always exists kind of variation and this need to be taken into account. Though, you do have the existing rule of thumbs and set strategies, but all these are workable, if tried in combination. Individually, they become worthless math.

Guided and Drawn on Government Policies

Government policies and regulations play an indispensable role in deciding on the real estate investment. These policies and regulations include control the zone based bylaws, construction activities; property prices; rent control procedures; license dispensations and property transfers; taxes etc. Therefore, in order to easily get through all these scruples, you need to have a legal advice from a seasoned real estate lawyer, and more so, you should have the best advice in your hand, when you want to make income through your real estate investment.