Now a day real estate investing has become very big business over the past few years most developer invest in real estate developments springing up all over the world. If your thinking of taking the plunge and investing in property.
Many developments take months or years to complete giving you instant equity from capital growth before you even been handed the keys. This is excellent news for both property investors and home buyers. Most real estate developers accept small deposits which can be as low as 5% of the properties value. An example property purchased for £100,000 with a 5% deposit and 5% growth over the period of a year will give a 100% return on investment for the property investor.
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  • REITs i.e RE MF will be offered shortly. C the impact of it on RE.

    Senior members would like to comment on the likely impact?
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  • Not without proper regulation

    Originally Posted by Sansei
    REITs i.e RE MF will be offered shortly. C the impact of it on RE.

    Senior members would like to comment on the likely impact?



    RE is a minefield of dodgy deals, litigation that could go on for decades if not generations, litigations that can come in decades later and so on.

    In addition there is no proper valuation system as well as a transparent, realtime price discovery system.

    Lastly (there are many others but these will suffice), there is no buyer protection in case of litigation (though buyer has followed due dilligence). Unlike in other markets with MFs and other kinds of instruments, this field is one where a lot of opacity exists. There is also a significant criminal element in terms of property being usurped and so on.

    Unless these laws and guidelines are put in place, even if these instruments are launched, you will see anaemic flow of money into these instruments.

    cheers
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  • for an investor with small savings or for soeone who does not have enough money to buy a house, REIT will provide a way to get involved in the real estate earnings.

    Folks running the REIT funds will have more legal resources and expert oversight in property selections for investments. So the risk is diminished for an average person.

    But it will take quite a few months for the REIT market to become operational and mature in India.

    And as Wiseman said.. success depends on whether the govt has the balls to regulate the market in a transparent manner.
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