To Be Successful Real Estate Developers


by Harry Johnson - Date: 2006-12-01 - Word Count: 777 Share This!

In recent years, many economists have recognized that the lack of effective real estate laws can be a significant barrier to investment in many developing countries. In most societies, rich or poor, a significant fraction of the total wealth is in the form of land and buildings. In most advanced economies, the main source of capital used by individuals and small companies to purchase and improve land and buildings is mortgages -- bank loans for which the real property itself constitutes collateral.

With the development of private property ownership, real estate has become a major area of business. Purchasing real estate requires a significant investment, and each parcel of land has unique characteristics, so the real estate industry has evolved into several distinct fields. Cities such as Vancouver, British Columbia have experienced remarkable growth in real estate prices in the new millennium.

Now a days property is play many role it is use as investing money or for a living purpose If your desire is invest money in property then it is not bad for now a days but u r looking for living reason then there are many precautions that is keep in our mind earlier than the buying .If you are moving out of your rented flat and you want to your bond back. Then decide which city is good for you & your future then decide to buy it .as we know that in metropolitan city the price is touch to sky then it is not easier to buy a house. Then you should city as your budget.

Because the amounts of money involved are typically very large, a majority of real estate development projects are financed with a large amount of debt leverage. Because expense is high, sale is difficult, and return on investment is delayed, real estate investment is inherently risky. A large part of the work of developers is the management of risk.

Successful real estate developers can become enormously wealthy due to the large sums of money being transacted and the value of the assets they control. However, because of the illiquidity of their assets, they are also very often cash-poor. Inability to remain cash solvent is the primary cause of business failure for real estate developers.

Real estate markets are modeled as a stock/flow market. About 98% of supply consists of the stock of existing houses, while about 2% consists of the flow of new development. The stock of real estate supply in any period is determined by the existing stock in the previous period, the rate of deterioration of the existing stock.
Every piece of real estate is unique, in terms of its location, in terms of the building, and in terms of its financing. This makes pricing difficult, increases search costs, creates information asymmetry and greatly restricts substitutability

Real estate can be purchased with the expectation of attaining a return (an investment good), or with the intention of using it (a consumption good), or both. These functions can be separated (with market participants concentrating on one or the other function) or can be combined (in the case of the person that lives in a house that they own). This dual nature of the good means that it is not uncommon for people to over-invest in real estate, that is, to invest more money in an asset than it is worth on the open market.

Real-estate consulting group Knight Frank has ranked India 5th in the list of 30 emerging retail markets and predicted an impressive 20 per cent growth rate for the organized retail segment by 2010. The number of malls in Mumbai, Bangalore, New Delhi, Hyderabad and Noida was expected to grow to about 250 by 2010 as against 40 now. In terms of total area, there was 12.40 million square feet of mall space available in these cities.

For years, India was lagging behind in the real estate sector. Despite the inherent potential, the real estate market in the country was characterized by lack of institutional funding support and absence of world-class developer now we can say that real estate market in India is booming. India is a fast growing economy in property.

For know about India real estate and property go to:

http://www.onlineghar.com

http://www.property-india.in/

Here you find the good real estate marketing flyer will also be attractively designed, neat and devoid of clutter. It should also be done in clear and easy to read type fonts. They give you an idea about property management and real estate management and what a real estate manager do?
Onlineghar.com is a privately owned company with offices in North India. Its web site consists of the largest single collection of properties and estate agents in India, with over 200,000 unique visitors every month.


Related Tags: indian real estate agents, property dealers for nri, property dealers in india, india property, property in india, open source solution to real estate listings

About Author: Harry Johnson
For listings please visit http://www.troubledteensdirectory.com/ Troubled Teens Homes You can also visit http://www.restoringtroubledteens.com/ for Struggling Troubled Teens . And http://www.troubledteensguide.com for Resource for Troubled Teens

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