Thursday, June 12, 2008

Investing in Real estate?

Now a day’s people see more returns in investing in real estate .Some times they even do not know the risk it offers .Therefore it is necessary to know various terms before investing in real estate. Down side risk is one of the factors that must be clearly understood. It is that that investor loses a good amount of money when the investor does no get the returns he has expected. Therefore upside potential must be kept in mind. Pattern of growth is another factor which has to be kept in mind. The more is the growth in the nearby areas compounded by infrastructure and facilities the chances are that the prices will increase significantly. Property having multi purpose use has more value then property having single purpose use. Another term which needs to be understood is the Alligator. An income generating property that costs more to hold than it benefits is an alligator. Long terms returns can be expected in such a situation.

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