Since 2003 prices in Bangalore have been steadily rising upwards. Property purchased at 400Rs per sq feet has risen to 1800-2000Rs per sq feet within a few years. This is a 400-500% increase in price. Similarly for Noida. A plot for constructing an independent house is not available in Noida today for less than a crore .
If your answer is been one of single family homes, multi family homes, two bedroom condos then give yourself a pat on the back … you might have made quite a tidy amount of money …
Basically what the rule of 72 deals with is the compounding of interest on investments. If you take the interest percent that is returned on your investment and divide it into 72 it will give you the number of years it takes for your money to double. Put $5000 in the bank at 4% interest and how long will it take for your money to double. Seventy two divided by four is 18 years.
Keep yourself in the loop: Devote some time every day to find out about what is happening in the he said and any alterations in your local market.
“Most Americans, as our latest survey revealed, over estimated how quickly the housing market would bounce back, but when it does, it will likely be a long and gradual process. Looking at the recent double dips in home prices, I expect the rest of 2011 to be volatile for savills india,” said Pete Flint, co-founder and CEO, Trulia.
When deciding whether or not to purchase a property you need to do the calculation on your cash flow. This figure will change each and every month as your income and expenses change. The goal is to have positive cash flow each and every month that you own the property.
You can assure private money lenders that although there are no guarantees in any investment, that investing in real property is a good investment because their money is secured by the property itself. Each state has different laws about private money lending but it is worth looking into the laws in your area and learn how to make money in real estate with the help of private money lenders.