Real estate investments have made people become President of the most powerful country in the world. As per Donald Trump’s own words “real estate is very good, as far as I am concerned”. But he also cautions it is the toughest business. Hence to get an average return which should also be constant in India it is better to tread with caution and prudence before investing in the real estate market.
Real estate investment in India could be made by buying and selling of properties which include both vacant lands & buildings, income from renting residential & commercial properties, investing in real estate stocks, investing in real estate based mutual funds and many others. All have a different kind of returns and it varies with time, the demand for supply, location, real estate tide in favor or against, and many more.
The rental income in India which has seen a surge in the past few years is still with an annual yield of only below 10 %. This is just above the bank interest rates and below the mutual fund returns. This is the scenario even with the bloom of the IT and other fields in India which saw a surge of 3 % increase in 2017. Also, it depends on the location of the commercial property.
Even in the fast-moving IT hubs like Pune, Chennai, and other cities have a yield of below 3 %. It is far less in more metropolitan cities like Mumbai. This is because the cost of investment in commercial properties in these cities is higher compared to other cities. The appreciation of the property value could also be varied according to the location of the residential properties.
This traditional method of real estate is still the best one if it is done with experience and competence. Still, it is possible to do it, provided the tide, location and maybe luck is favoring. There could not be any fixed average return on these investments.
Individually investing in the right real estate stocks could yield good returns. This is based on the stock performance and its ability to do good business in the future. Selecting those stocks on fundamental and technical basis is the key to reap huge profits.
As of date in this year’s struggling real estate market, the best bet would be only investing in real estate mutual funds. They have the best of returns in real estate this year with 12 – 13%. The professionally managed mutual funds are able to give the best of returns and choosing them will be the key to best real estate investment with maximum profits and minimum risks.
Apart from the above-mentioned information, you may also take the expert’s help by going through the official site of SmartOwner’s website.
In the high volatile risky real estate investment could make millionaires in India if done right and could yield good average returns with investment in the right property or mutual fund.