Real Estate - Short Term and Long Term Investment

Real Estate is a legal term related to a land or all the fixtures of land including building and other improvement. Real Estate is often called a real property, sometime called Realty. There are different types of Real Estates i.e. Real Estate Marketing, Real Estate Investing, Corporate Real Estate, Residential Real Estate and Commercial Real Estate.

Investments in Real Estate can happen in two ways as under

Short Term Real Estate Investment

Short Term investors are looking at great profits in this rapidly appreciating market. Short term real estate investment means buying a property and selling it in a short period of time. The wait for profit potential is very short when compared to any other investments today.

But there are some risks involved in this short term real estate investment for which the investor has to be prepared in advance. There are some situations where the investor has to invest more than his budget; more money is needed for repairs and so on. Short term investors should follow the below steps for a fruitful result:

1. Check whether the Real estate property values are increasing every day.
2. Complete the repairs and connections as early as possible but at a reasonable price within your boundaries.
3. Check whether the finances and taxes are able to withstand possible negative feedback.

The view of short term real estate investment is to make quick profit without holding the property for a long time. It is also required to act quickly during the renovation stage. Hence, proper research and knowledge is required. You may contact the local governments, housing authorities, investment groups, other investors and other resources for gaining a proper knowledge.

Long term Real Estate Investment:

Long term real estate investment provides a great option for possessing high returns. Long term real estate investment requires much more effort and commitment for maintenance than a short term investment. You have to purchase a property in the specific area where long term appreciation rate appears favorable and then act as a landlord by giving the property on a rent. You have to perform all the maintenance issues that are required by a real property. The following factors should be considered in order to obtain a successful long term investment:

1. Ability to deal with renters or tenants.
2. Investigation for the possibilities for the tax break.
3. Long term appreciation of the property should be positive.
4. Avoiding tendency to sell the property on profit immediately.

A clever long term real estate investor performs strict maintenance schedules by keep a readily accessible list of concerned professionals to perform the repairs immediately, with an aim to satisfy the tenants. Choosing the potential tenants by avoiding irresponsible and unreliable tenants is a key factor while going for long term investments. Long term real estate investment involves several risks but a smart investor will be able to minimize them at the beginning of the investment. You need to keep some capital on hand in order to maintain the repairs when the property is vacant and when the appreciation is declined.

For a fruitful long term real estate investment, one should keep track of the market scenario and try to maintain relations with the local real estate industries as appraisers, brokers, attorney’s and other investors.

Gold ...Looking ahead from here

In the months April to June 2011, India and China have accounted for 52% of Global bar and coin investment and 55% of global jewellery demand. Year on year the volume growth in India has been 38% as against 25% in China and 7% globally. As per a report from the World Gold Council the prospects for both the countries for the remainder of the year remain optimistic.

From April to Sept 16, 2011 as seen in the above chart, the rates of Gold has seen ups and downs but the trend line clearly shows the way ahead. As can be seen from the chart, the rates were below the trend line, but went suddenly northwards and rather went overboard.

The prices have now shown some correction and are on the trend line, giving the right opportunity to get into the commodity, if you are not already.

The reasons stated for an optimistic performance of Gold in India include

1. Relative economic prosperity
2. High Inflation Rates
3. Good Monsoon
4. Number of forthcoming festivals in which gold purchasing is customary

It is expected that the central banks shall remain net buyers of gold throughout the remainder of 2011.

Summing it up :--

Long term investment in GOLD looks extremely positive