Truly said by Warren Buffett,”Price is what you pay. Value is what you get“. True for a Real Estate Business,where land is bought,sold or rented. With no doubt,such a businessman is valued for his payment. But is it really that much profitable that can support high standard of living,as the perception it possess?
The answer to this question is just valid after looking at the records that says,the housing sales were an all time high since 2015.Inflation on an average is 4.6% & growing continuously.
4 major factors are responsible for its rise
Population: With no doubt,increasing population needs land to live & on the same side, employment! Urban developments attracting this huge population will directly influence Real Estate Business in a positive way.
Economy: If large investments are invested in buildings like hotels,it will have less profit as stays are short term. But in buildings like housing societies it’s beneficial due to long stays.And housing societies are being adding from last few years.
Govt. subsidies/policies: Various acts & policies like Real Estate (Regulation & Development),2016,100% deduction in profits for affordable housing construction, Implementation of GST,Demonetisation,etc have proven in good for the speedy execution of property disputes,quick development & construction,fund flow,etc for the Real Estates.
Location: With growth in technology,even an ordinary location is turned out into a smart place for the housing needs which is obviously a cherry on top for the investors.
David Woronker said, “Buy real estate in areas where the path exists….& buy more real estate where there is no path,but you can create your own.”
All this shows that for a customer,a good Real Estate Housing Society or even a private too, is an opportunity to bloom the bud of happiness of his/her life. And for the owner of the business,it is undoubtedly an opportunity to set up his/her business & to earn immensely.
As said greatly-
Everyone wants a piece of land. It’s the only sure investment. It can never deplete like a car or a washing machine. Land will only double its value in year(s).
Real Estate Business: cycle of land sold to set up & bought to bloom:)
By: Aakansha Gyan Singh
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