In the light of recent events, we have seen how the pandemic has affected mankind in masses. The widespread outage left many people sick, jobless and homeless during the lockdown. The loss of uncountable precious lives will always be the biggest misfortune that we experienced during this epidemic.
Two important things that feel pretty to the negative impact of Covid-19 are health and financial stability of many. Only a few ones remained safe as they fully took all the precautions and got vaccinated on time. If we look at the finance side, only a few businessmen continued their ventures at the same pace. Among these few lucky ones, most were working in real estate. Real estate business is the only business that has flourished even in these tough times.
What is Real Estate Business?
Real estate is a worldwide popular business that includes purchasing, renting and selling of land or well-built property. Over the course of time, this business has become a proper field that is thoroughly studied and practiced as an occupation. The one who provides professional consultancy regarding your asset of interest is called a Real Estate Agent, also known as a Realtor. On the other hand, the interested party or client who intends to buy the relevant asset is known as an Investor. An investor purchases a significant property in the hope of gaining a considerable amount of profit from it. The main aim of making an investment is to attain monetary gains out of it.
Real Estate Projects:
Now that you are familiar with the real estate business, let’s get into the details of real estate projects. A real estate project is a term used for a housing society which provides residence and other facilities along with it. The purpose of making such societies is to provide similar living conditions to people living in the same space so that they can be identified as the residents of that particular society. These societies include important components like educational institutes, healthcare units, grocery marts, shopping malls, cinemas, parks and other recreational spots. The notion behind this is to provide all amenities and facilities within easy access.
As every coin has two sides, the same happens when you invest into a real estate project. Investment into these societies has their fair share of pros and cons.
Pros or Benefits:
The most common advantages of investing in residential societies are:
Financial Security
Roof over head
Basic and Luxury Amenities
Important features in close proximity
Spots for refreshment and enjoyment
Cons or Risks:
If you have not researched enough regarding the project you are going to invest in, you might experience certain disadvantages; these can also be termed as the ‘risks of investment in housing projects.’ Some of the most major ones are listed below:
NOC not approved
Time Consuming ( you never know when the society will fully develop)
Delay Possession
Monetary Loss
Some societies claim that their NOC is approved but investors who don’t do thorough research might end up being stuck with a scam. Another risk while investing in a society is that you never know when it will develop fully. Similarly, possession of assets may also be delayed which is another drawback. The biggest risk of all is not gaining as much profit as you expected to, or in worst case scenario, you sell your asset at loss.
Projects that assure no risk regarding investment are:
Conclusion:
Hope this article gave you sufficient clarity on the risk that comes with investing in real estate projects. For more help you can consult a real estate professional who will guide you accordingly.
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