1/22/2007

Real estate - the new gambling business


Real Estate- the new face of business,is turning to be the most profitable business of the present times.With the increasing amount of risk[rapid raise and fall of prices] in investing their money on other things like gold,stocks......people are turning to invest their money on land.As the population increases and the towns devolop into cities,these lands prices are going to touch a high.This is the strategy of the realtor's.But real estate business is not that much easy one to do.what are the risk's involved??
Always remember that if one person gains something in a business,someone else loses it.The same applies to real estate.If someone gains by selling the land at a higher price,the other might lose after the prices fall down.Lands also have a price level that reach saturation.Its the real estate brokers that create the price boom in a certain area to get their land's to be sold at higher prices.Real estate business most of times is done by mouth.Broker's try to bluff you saying the words like that this land has got bright future.What is meant to them is just the money they get in the transaction.Sometimes influential people proposes some future development in the area to push the land prices up.But the real fact will be that some of their relatives might have lands around there.Once the lands are sold out,the proposed development is never again talked of.And the one who buys the land when the prices are high is ditched.
Some problems the normal people have before and after buying the land are:-
Broker's can ditch you[might sell you a useless land]
The other person can sell you govt land or fake you
No guarantee of price increase
Forced acquisition of your land by others[major problem for normal people]

Precautions and suggestions:-

Buy a land from the people you know
Never let the whole thing in the hands of the broker or property dealer

know about a person who sell you the land before you buy[trusted sources]

Never buy a land when the prices are at a high
know about the land.
Dont invest on land if you want immediate profits

Enquire about the land in the government office whether its government land or not[sometimes corrupted officers allow the realtor's to sell such lands.Beware of them]
Keep checking your land now and then to avoid acquisitions by others
Invest on outskirts of city as areas inside will already be at saturated prices
Never pay the whole amount until the registration is over
construct something on the land as soon as buy to avoid forced acquisition.
If you want to do big business with real estate ,a bit of political support might be necessary

Investing in the land is not a bad thing.but be a bit attentive.else you might get loss

5 comments:

It sounds like you had a bad experience.

In general I agree with most of your points. However, I think that they show some inexperience.

In my experience, *never* trust a broker unless they actually work for you. If you are talking to the seller's broker, their job is to sell the property. They shouldn't lie or misrepresent the property (there's a big gray area there) but anything else is fair game.

When dealing with land, check several things. The current ownership of the land is just the basic. Other things to check depend on what you want to do with the land. If you wnat to subdivide the land, check to see what the smallest size is. If your land is 60 acres and the smallest size is 40 acres, you can't make money that way.

If you are holding the land for future increases, where is that future buyer coming from? Is there a city near by or are you in the middle of the desert/forest?

These are just some of the things you need to look into when buying land.

This site is excellent and so is how the subject matter was explained. I also like some of the comments too. Waiting for the next post!!!!!

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Well, since then real estate has been known as the income stream for gamblers. With the doom and gloom in the market, we can't pretend if it's favorable for the buyer or the seller. could be good things going on right now but there is always a downfall. Good thing right now is that developers are giving more opportunities for both sides.

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