How to Find Your Return on Investment (ROI) in Real Estate

The return on the Investment is actually the calculation done in order to understand that how much profit is earned on investing your money on Real estate. Now there are many people who may wonder that how to find out the ROI in Real Estate? The answer to this question is very simple as the amount of money that you have invested in your property and the amount of money you get after selling your property to someone else is the ROI of your investment. Now there are several mathematical and logical answers are there for explaining it in a better manner.

Therefore, let’s get in to the details of the ROI calculation of the Real estate business in a better way.

ROI:- The ROI is basically an accounting concept which indicates the percentage of the money invested that is being recovered by deducting the associated cost. Now if you not aware of this accounting terms that it may sound confusing to you. Therefore to understand it in a better way let’s see the formulae for the calculation of the ROI.

ROI=(Gain –Cost) /cost 

Where Gain = Investment Gain

Cost= Investment cost.   

There are basically two methods for calculating the ROI in the real estate business that is being used by most of the experts in this field.

  • The cost method:- In this method the ROI is calculated by using the equity associated with that property by the cost of the property involved in it. If you want to use this method then you need to add up all the cost involved in the property like the purchase, maintenance of the property, and the repairs. Now, you may have understood how to find out ROI in Real estate business.

In the above mentioned formula you can easily apply to calculate the ROI of the property that you need to know from your end very easily.

  • The out pocket method:- The out pocket method is one of the most favorite method of calculation that is being used by the investors. The reason being this method shows higher results in the ROI. By taking out the mortgage loan most of the investors try to leverage their rate of investment. This is the reason why more return on the investment is shown in this method of calculation. This is also one of the reasons why most of the investors prefer this calculation process.

Now, from the above explanation it has become clear how to find the ROI in Real estate. Just you need to follow the above methods to get the desired results ot to calculate the ROI in a better manner. But remember one thing apply this method if you want to resale your property after certain period of time. Now with the passage of time the value for the property also changes. This is why you need to re-adjust the value of your property in a better manner to get the right returns on your investment on your property.

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Key Landmarks and Facilities to Look for Before Buying a House in An Area

Whenever you decide to buy a new dream home then there are certain important factors that you must consider before investing your money in it. Some people are in a dilemma that should you buy your home according to good location only? Or there are several other factors that you must consider before you buy a dream home of your choice.   Practically only location of your home is not the single most vital factor to consider before buying a home. There are several other factors too that most of the people do not consider while buying their house.

Therefore let’s find out some of the key factors that you must consider before buying your dream home.

Facilities to Look for Before Buying a House

  • Location of the house:- The location of the house is the most significant part of your home buying decision. A good location will allow you in getting easy access ti transportation facility, school, work, recreation places and many more. Easy access to main road and railways can help you to communicate better in the time of emergency. The market places near your house will help you to get the required items as and when required with little effort.
  • Locality and the neighborhood:- The locality and the neighborhood plays a very important role in your buying decision. You will stay along with the neighbors for the entire day along with your family. So the safety and the friendliness of the neighborhood here play a very vital role. Now, this might have given you the answer that should you buy a house according to the good location only. You cannot afford to take a chance regarding the safety and the security of your family. This is why the locality and the reputation of the neighborhood must be properly judged.
  • The size of the lot:– The layout or the size of the lot must suit your needs. According to the number of members in your family, you may have requirements of bathrooms, bedrooms, balconies, and kitchen. These requirements may also get changed from time to time as per your requirements and needs. You may also wish to add more rooms in future as per your growing requirements. This is why the layout and the size of your lot must be larger enough to accommodate your future growing requirements.
  • Age of the house:– If you wish to buy a readymade house them the age of the house is the most crucial factor that you must consider. The reason is you may have to modify and maintain this house as per your requirement. This is why you need to calculate your expense to in this regard.

Hence, from the above discussion it has become clear that whether should you buy a house according to good location only or you must also consider several other important factors that have been mentioned above. But one thing you must take care of, while making your decision, regarding buying your home that you must have the scope for modifications if required. Make a wise decision to ensure better returns on your investment.

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Buying a House on a Main Road:- Pros and Cons

If you are planning to buy a house then the location is one of the prime aspects to look for. Most of the people try to buy a house on the main road. You need to understand several pros and cons of buying a house on a main road. Many people make a hurry while buying a property but this attitude can waste your money and time. If you get a property on the main road then you must consider several essential points before making a buying decision.

Hence, let’s explore some of the core important pros and cons of buying a property in the main road.    

Buying a House on a Main Road

Pros for buying a house on Main road 

  • Its where you want to stay:- If you love hustle and bustle then the house on the main road is a matter of enjoyment for you. In the town or the city there will be lots of hustle and bustle there will be people who will use the side walk and cars will drive past the road. There will be congestion and business all the time in the road.
  • Easy access to recreation and transportation:– If your house is on the main road then you can easily avail the transportation from your house within a walking distance. Bus services, trains and other amusements park will be very near to you.
  • More busyness, schools and security:– You will experience more busyness if your house is on the main road. Main roads are more secure than the remote areas. More lit roads, more school options and the fire stations all will be nearby of your residence.
  • Pricing discount:– Most of the people dislikes sound and noise this is why on house on the main road you will receive more discounts.

Cons for buying a house in the main road:–

  • Lots of noise:- Most of the time vehicles will pass along your residence will create lots of noise. Well insulated window panes may prevent the noise but though if you prefer peace then house on the main road is not the best option for you.
  • Lack of Privacy:– You may not enjoy the privacy in your own house if it is on the main road. People in the car or your neighbor may look into your house all the time this may hamper your privacy.
  • Lots of pollution:– There will be lots of pollution if your house is on the main road. Vehicles will pass by very often and release lots of exhaust. Dust and pollution will become your friend if your house is on the main road.

Hence, from the above discussion, it has become clear that there will be several pros and cons of buying a house on the main road. You need to think properly what you want before buying a house. You cannot make any rash decision as you cannot buy a house every now and then. Depending upon your priorities you can make a choice to buy a home on the main road.

If you are planning to buy 3bhk Flats in Mohali there are a number of parameters to consider before making the final call. Give special consideration to the accessibility of the location form the schools, hospitals, restaurants, and retail outlets. Ensure the development in the locality is pacing rapidly and consistently from a capital appreciation perspective.

 

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Real Estate vs Stocks:- What is the difference

Over the past few decades, the debate between the Real estate and the stocks has become very common. Both the investment procedure is unique in their ways and posses their respective merits as well as demerits. On which side you want to focus depends entirely up to you. Both the investment procedures are absolutely unique and different in their ways. The debate of the best investment Real estate vs Stocks is a never-ending process. You just need to select the best as per your needs and present requirements.

Therefore let’s explore the points of difference between both of them and try to understand the difference in a better manner.

Real Estate vs Stocks

  • Tangible difference:- In the case of real estate properties, you can get a sense of touch and feel. Real Estate is a tangible investment. On the other hand, stocks are intangible investments by buying the stocks, and you will become the owner of any company. In the case of Real estate properties, you can add value to your property. On the other hand, in the case of Stocks, you cannot add any value to it entirely; it depends on the market condition.
  • Volatility:– The real estate properties are less affected due to market volatility. You can enjoy continuous appreciation of your wealth. On the other hand, stocks are prone to market risk if you earn a profit, you can enjoy higher returns. But, if you incur losses, then you are open to facing the market challenges to re-establish your assets to gain the momentum in your business; this point is crucial in the case of Real Estate Vs Stocks
  • Liquidity & flexibility:– The liquidity rate of the stocks is very high compared to real estate investment. You can easily sell the stocks very quickly and can efficiently reallocate the retirement account. But in the case of real estate, the selling process is very rigid and slow. It will include lots of paperwork and time to resale a property owned by you. Before investing in stocks, you need to know the company’s current status and future growth potential.
  • Stability:– The investment in Real estate is quite stable compared to the stocks. You can get better returns on investments from the Real estate over some time. With the passage of time the value of land and property gets appreciated. On the other hand, over time, the market may face volatility, and the stock price may fluctuate over time. This is why make an informed investment to ensure stability.

Hence, from the above explanation, it had become clear that you need to decide in a proper manner where you should invest. The debate of Real Estate vs Stocks may not get over quickly. Before investing in stocks or Real Estate properties, you need to take care of several aspects to make investments in the right manner. You just need to re-consider the facts before investing anywhere. Just consider the risk and return factors first before investing as per your current financial status.

Mohali is offering the best housing options for those seeking spacious homes with quality living. Flats in Mohali are the symbol of comfort living at affordable prices with numerous upcoming projects in the pipeline. You can enjoy its amazing connectivity with adjoining cities like Chandigarh, Derabassi, and Zirakpur.

 

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Your way to homeownership with a tight budget

Buying a home needs careful planning and financial commitment as it is an asset that is passed on to generations to come. Indian Real Estate market has witnessed a gradual upward trend thanks to government reforms, easy access to home loans, and rising income levels. While owning a home is in everyone’s wishlist but making your dream abode affordable and within your budget takes a cautious assessment of the market and your finances. It is wise to have on some additional funds before taking the plunge in buying a property but the waiting period might lead to an increase in the property prices. The Key is to be patient and find your opportunity window to grab the deal of your lifetime.

So what could you do to take a plunge in the real estate market without burning a hole in your pocket? Let us take a look at the factors that could help you buy your dream abode:

Your way to homeownership with a tight budget

Explore the Suburbs

While city cores are flooded with crowed streets and surging properties, the rise in the development of suburbs has led to the construction of reputed projects in the area. When it comes to real estate prices, suburbs are much more affordable as compared to the prices in the main cities. Even with a tight budget you could have a variety of options to choose from and can rather settle for a bigger space at affordable prices than the properties inside the cities. The developing projects are based on new design concepts, surrounded by green landscapes and quality amenities, making suburbs the best combination of quality housing at affordable prices.

Consider investing in Starter Homes

Invest in starter homes that are affordable, compact, and smaller. They may not offer the luxuries of your dream home but purchasing them could be a wise move. By investing in a compact home you could save on paying the monthly rent, build on to your savings, and could eventually sell the house for buying a bigger one. The concept of smaller homes is in line with the government’s affordable housing programs and offers various subsidies to first-time homebuyers. The compact homes are easy to maintain and incurs fewer expenses. On top of it, they have higher resale value due to the high popularity and demand of these homes amongst millennials. You can profitably exit your real estate investment in this segment and purchase a bigger space whenever you have the right budget.

Evaluate an Under-construction property

Investing in under-construction property is more likely to be cheaper as compared to the ready to move in property. The waiting period could be longer but it is worth the price along with so many offers and discounts offered by the builders. Also, you could find more options to select from when it comes to under-construction projects. Owning to RERA registration, booking a flat in an under-construction project developed by a reputed builder is now secure and safe.

Buying a house doesn’t have to mean losing your life savings, but taking a step by step approach and exploring the possibilities real estate investing offers. Be patient and don’t rush into homeownership without striking the balance between your finances and requirement.

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