Buying a Home for End-use, while wondering if it is an Investment

The initial difference is that an investor is looking at the numbers whether there is a profit factor in buying the property or controlling it and a home buyer wants a fine house to live in at an affordable price. The rest follows from there. While the investor is in the lookout for a property that maximum people are looking in that geographic area (for area benefits, offices, etc) will want to buy. A home buyer as an individual has certain ‘traits’ or requests that might not completely fit in with the normal houses in the community. For instance, the new launches project in Kolkata will have the groups, the buyers and the investors. The buyers who are planning to use the property will be looking for an appropriate property looking at their own benefits, whereas, the investors will look for the numbers before investing.

Even if real estate is a better way for the return of investment than any other investment in the market the only question remains that can end-users think it like an investment? This article might have something to say on that same topic. The mentality of home buyers along with their expectations vice-versa on the return on investment (ROI) will definitely be different for the end-users and the investors. On the other hand, this minor difference might be disappearing in the top eight cities of India. The risk that is being taken for the return to suffice the same risk has been predominantly done by investors. It is debatable whether the mindset of the end-user is similar to that of a seasoned investor. Let’s take for example a person buys a property in Kolkata where is present stays due to his work, but he stays in a suburb like Hooghly while comparing the price he finds out that the price list is comparatively less than that of the property in Kolkata so after retiring he could buy an apartment with similar amenities and the same BHK. 

The primary question that comes our way is whether a house has become more like trading commodities whereas the emotional quotient associated with its purchase slowing disappears in the leading cities of India. Even though an investor does not have a sound economic idea, chances are that he will not lose the money. Comparatively, if we see the real estate stocks are rather more risky as few companies will not have blue chips resulting in having debt. However, the quantum return might not be high still real estate will be a safe investment. With the stocks being stricken off a property concerning land will always bring its owner fruits laden with economic returns. In the coming years, rentals being able to skip the authority will benefit from gaining a good amount of return from this industry. The question still hangs on what kind of property is best suited for investors as well as buyers, it is evident that buyers will be looking for a property that will ensure their security and comfort while investors will check the demand of that area before investment.

Considering the trail of the buyers in India, they tend to buy property in the main cities or the cities they are persuading their jobs at or when they retire they would be looking for investing in a property in Rajarhat which for example is their home town, even if they have rented a property in the city they work in. Nevertheless, if a person is not an investor even though we show him to research on the interesting benefits that come out from investing in a property that will not work on them hence they won’t be investing in an area his interest and knowledge don’t lie at.

The end-users should not buy homes relying on the price they had expected would be appreciated. Those houses with a better return on investment are any day better than any other investment area for a long-term time frame; let’s consider 10 years more or less. In the residential area, on the other hand, if someone picks the right property at the right price, give or take four to five years will start proving him the return on investment. The framework of time is very important for investors since the product might vary accordingly. Pointing out the area of investment where the return on interest will follow in one to two years that will be investing in a pre-launched property in North India. Those opting for mid or long-term investments then, they should stick their focus on commercial or retail properties as this might be the appropriate option for them. Let’s consider a person who will be buying two properties one in North India and new launches project in Kolkata for commercial use then he can expect to start getting his returns from the former while the later will get ready for business is no time and start giving returns for a long-term time frame.

None the less, if someone is looking at a reasonably long-term phase, then the investment in the land would be perfect, as the returns are at its peak in this class. There are illustrations of such people who have been benefited a thousand times more than what they had invested initially, for over a time phase of 15-20 years. Eventually, all the home buyers have to seriously consider their moves in each step, on whether they will become an investor or an end-user. For example if a person is seriously thinking on investing in real estate he/she considers all the given facts, regulations, returns they will receive from that property along with other necessary documents on the same whereas an end-user just has to consider the area he/she is choosing and the benefits that s/he will get in return. The idea about turning real estate investment will only be fruitful if one considers that property for a let-out property for renters to move in.