Essentials of Real Estate Investments

Real estate is an essential investment asset class to complete a portfolio. When the deciosion is made to invest in property, a dilemma sets in– whether to buy an apartment, house or a plot of land? To buy a plot means the owner has the freedom and the responsibility of construction. This requires monitoring and extensive involvement in every step. However, the sovereign choice to build also leads to exceed budgets.

While buying an apartment, you do not have to worry about hiring an architect, seeking government approvals and dealing with contractors. These are the responsibilities of the builder. The developer also takes care of essential services like power backup, maintenance and security, in addition, you get access to common community facilities. Apart from the house and registration costs, the buyer has to incur a cost of interiors alone.

Orris has had a great spell in last three years in the real estate sector. Foundations for some of the ambitious projects were laid and a few have reached their finishing stage. Apart from its foray into real estate, Orris has made inroads into energy, hospitality, golf and education.

Location is the key to price. If the market is stable, the value of a plot will rise over time. The supply-and-demand equation will also affect the price of real estate land. Increasing scarcity of land, especially in urban areas, also increases the value of the plot. The appreciation value of plots is higher than that of apartments.  This is not to say the price of an apartment will not rise. nfrastructure and neighborhood are also prime factors for the valuation of both plots and apartments. However, the value of a building has to factor in the value depreciation due to age.

A house is the only option if you are looking at property as source of income. This is not possible in case of plots. However, owning multiple houses and plots means additional tax burden. You can show only one house as self-occupied. You will have to pay tax on income from other properties even if they remain vacant.

For more info visit: http://www.orris.in/