Real Estate - Business Financial Plan

Real Estate can be defined as a kind of business or as a tangible asset. Now as a tangible asset, it can be defined as a property which can only consist of land or a land which also has houses and buildings built over it. These are all real and immovable things and thus the name Real Estate is given to it. Now as a business, Real Estate can be defined as the profession, where the buying, renting or selling of land and housing is involved. Real Estate is a very lucrative and promising sector for people to earn money, especially in Developing Nations like India.

There are many advantages of Real Estate. This is a sector which is usually free of external economic factors like Recession as Land & Property are things which are always in huge demand due to rising population. Real Estate is also a very safe Investment Option as compared to the riskier Stock Markets Sector. Usually, the price value of a property increases with time, just like wine gets richer in its content the more old it gets.

There are some disadvantages of Real Estate as well. Inflation is an economic factor which at times shoots up the prices of a particular property and if it?s not located at a favorable place then this can affect the sales of that property. It?s so as buyers alias customers in Real Estate want a good Return on Investment (ROI) even in Real Estate just like other Investment Options. Improper Land Acquisition Policies followed by any Real Estate Developer can also hamper the price value and reputation of a property like land or any establishment like buildings and bungalows.

Real Estate involves putting a huge amount of money into buying a Real thing like a flat, bungalow or land instead of Conceptual things like Shares. This is the reason that a buyer should properly investigate about the past & present of a land, its area, infrastructure and other essentials involved with it. Now taking online help from Real Estate Sites and Reputed Real Estate Consultants is also very important. After all, Real Estate is a serious business and not a matter of joke for individuals, families and organizations.

Source: http://businessfinancialplan.blogspot.com/2012/08/real-estate-lucrative-sector-for.html

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