Real Estate better than Other Sectors
The answer to the question that is Real Estate better than other sectors to earn money cannot be partially agreed. Hirsh Mohindra
says that it has both aspects as it is a sector that has fluctuations
based on the market conditions and demand of property and economic
conditions. You cannot only earn profits in any business you have to
bear risk to reap profits. So just like any other business this business
goes through all the business cycle that is the boom and the depression
period.
Investment in real estate requires lot
of money and patience. Sometimes, the profits in sale and purchase of
properties is manifold depending upon the prevailing conditions in the
market. Investing in real estate is unarguably better than investing in
stocks, banks, bonds and even gold. There are three different segments
of real estate i,e residential, commercial and industrial plots. On an
average, 7 percent to 8 percent is an output on sale and purchase of
real estate. Real estate is a physical asset. Therefore, it provides
opportunity to generate monthly cash flow through rental income.
The real estate market is usually a
numerous financing decision that every investor should take in their
life. It can produce continuous submissive benefits and can be a great
long-term property investment. Hirsh Mohindra
says that if the value progresses over time the investors are in a
win-win situation. You may also utilize it as a part of your overall
plan of building wealth. It is a great investment opportunity for young
entrants who have just entered the market. A little research can help
you start the business and lead successfully. The property industry that
is the real estate industry is all about making money out of the land
and real estate sector.
So how is the real estate sector earning money? There are three primary ways in which investors earn money from real estate sectors:
The primary way in which a person earns money in the real estate sector Hirsh Mohindra
says is through the increase in property value. The property rates get
increased and the increased value is the risk the investor takes in
the market to reap this profit. It is much better than parking your
funds in the fixed deposit or other sectors.
Another factor through which the people
get money is the Rental income which is received by renting out the
resources that are the property to tenants.
The last reason which is primary for
reaping profits in the real estate industry is the Proceeds that are
created from business activity that depends upon the real estate.
Originally Posted: http://hirshmohindrachicago.com/real-estate-better-than-other-sectors/
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