Resolving the Real Estate Investing Fear Factor

If you’re a new real estate investor who has thought about real estate investing but have been due to a nagging feeling that you are certain the market will collapse once you step in and you will lose all your money; guess what, you’re not alone.Fear grips every new investor; and no one successfully investing in real estate today would state otherwise. It’s common for potential investors to miss out on incredible opportunities for no other reason but an overwhelming sense of fear.Okay, so let’s address some of the most common fears and see whether we can help you to become less anxious, and maybe take the plunge into real estate investing after all.Negative Cash FlowHey, the idea behind investing in rental property is to make enough money to cover operating expenses and loan payment with some left over to deposit in the bank. Having to feed a property won’t cut it; no investor wants to feed a rental property out-of-pocket.Believe it or not, this fear one might be the easiest to manage because it’s straightforward: simply run the numbers before you buy. Obtain the property’s last twelve months income and operating expenses, calculate a mortgage payment, and plug the results into a spreadsheet or real estate investment software program to determine cash flow. If the cash flow is negative, so be it, otherwise dispel the concern and move ahead.Just be sure to use realistic rents, a vacancy rate (even if the owner claims full occupancy), operating expenses (don’t forget replacement reserves), and a loan payment to compute your annual cash flow.Also, never walk away merely because the property indicates a negative cash flow. Dig a little deeper and look for ways to manage the cash flow. Many rental income properties simply go negative because of poor property management; you might have a probability of raising rents and cutting operating expenses. Who knows, you may even discover a real opportunity overlooked by the current owner.This Isn’t the Right TimeYes, for any number of national or international events, potential investors often feel it would be advantageous to wait for better times before making an investment in real estate.But realestate investment has little to do with the economic climate at the time you buy. Foremost, consider the long haul. Economic depressions come and go, but how will the investment property impact your future rate of return? That’s what counts.If it helps, bear in mind that unlike the fluctuating stock market, realestate has a profound record for steadily appreciating. Perhaps not overnight, and not without an occasional bump, but historically, real estate value does go up over time.Losing Your MoneyOf course, you wouldn’t want to tap into your savings to make maybe the largest financial investment of your life only to wind up losing it all.The key, however, is to study and research. Learn about the property you want to invest in, and the area where you plan to invest. Look for sources of information like seminars, college courses, real estate software, and real estate investing books. Get an expert appraisal of the property from an investment real estate professional or property appraiser. There’s always some risk when real estate investing, but developing a plan with knowledge will negate most of your uncertainties.Tenant and Management HasslesOkay, it’s true. No one wants the headache of having to repair a refrigerator or to fuss with an unruly tenant; and its understandable why that concern does prevent many people from becoming real estate investors. But life is always a series of trade offs, and trading off an occasional migraine for potential future wealth is generally worth it.However, it’s also true that in time you will learn to deal with and manage most issues in your sleep. If not, you can always hire the services of a reliable property management company to deal with it for you. For about ten percent of the rental income, a property manager will do all the dirty work; the advantage being that it will relieve you of the time and stress of having to deal with tenants and repairs and in turn puts matters like late rents into the hands of experts.Lack of Real Estate ExperienceJust because you have not yet purchased an investment property should not keep you from real estate investing. In this case, locate a local broker who specializes in investment property to assist you.When it actually comes time to buy a rental income property, you’ll be surprised to discover that it’s not as insidious as it looks, and tapping into the mind of an expert will increase your comfort level significantly. But the keyword here is investment property specialist. An agent who just sells houses won’t benefit you; you want a real estate professional with true investment property experience.It’s Time to Get StartedGranted, the hardest part about jumping into real estate investing is getting started. We’re great at making excuses, and there are always numerous reasons to put off starting something new.Yes, we want to be cautious. It’s better to put the breaks on and approach real estate with adequate knowledge. So if you’re struggling, here’s my suggestion: learn, research, and plan. Educate yourself about real estate investing, learn about real estate in general and more specifically about your specific real estate market, and develop a road map about the financial security you hope to achieve.Afterward, pick out that first rental property, make a purchase, and then take over as manager. If you’ve stuck to your investment plan goals, calculated the numbers, did your due diligence correctly, and work diligently to increase income and control expenses, in time you’ll be able to move on to bigger and better properties.

Real Estate in Delhi

Reasons for Real Estate Boom!•The increasing foreign investments in real estate in Delhi have opened new avenues for the commercial properties in Delhi. Established multi-nationals operating from Delhi have created success stories for others to follow. The demand for office space reflecting international standards of the MNCs is in vogue.• Also, as more and more people plan to take a break from the routine 9-5 jobs and plunge into running their own businesses, the demand for office space increases ten-folds.•The population explosion in Delhi due to enormous migration of manpower raises the demand for residential properties. As far as purchasing a residential property is concerned the rich can do so at any point of time, the problem lies with the middle working class and the poor. Both the government and the private developers have taken a note of this and are now targeting to provide affordable residential options. Special schemes are being launched to construct townships for the poorer sections of the society.•Cheaper raw materials, manpower availability and cost-effectiveness to run industrial units in the Delhi NCR region has sparked a row among industrialists to encash the available resources and the opportunity.•There were days when one had to run in different directions to shop for clothes, footwear, jewelry or rush to eateries and movie theatres situated at two different ends. The advent of Malls has changed the way you shop, dine or watch a flick. Malls have brought in the concept of everything under one roof. The multi-storied Malls have everything to offer, right from your basic needs to entertainment options. The real estate in Delhi has a silent invader in the form of retail sector. Malls and multiplexes are mushrooming in every nook and corner of the city.Residential Sector in Delhi’s Real Estate MarketTaking a closer look at the residential sector in the real estate market in Delhi, the prices of residential properties are mainly driven by location. Lutyen’s zone is a preferred posh locality among the affluent class. Residential properties in this area sell like hot cakes though at a breathtaking price. Aware of the worth of owning a house in this area, the residents prefer not to part with their residential asset. Thus, it is rare to find a property on sale in this area. As the property demand in this area is high with a limited supply, it is but natural for the prices to be exorbitantly high. Lutyen’s zone thus houses top industrialists, politicians, bureaucrats and business tycoons having deep pockets. The prices in this area never see a downfall due to the elite neighborhood, historical significance of the location, well-developed infrastructure and civic facilities. Owning a home in Lutyen’s zone earmarks high status in the society.•Real Estate in East Delhi
Moving on to residential properties in East Delhi, the area is fast gaining acceptance as compared to the past. Anand Vihar, Lakshmi Nagar, Shahdara, Indirapuram, Mayur Vihar, Vivek Vihar, Dilshad Colony and Patparganj among many others fall under East Delhi. East Delhi is bordered by Ghaziabad and Noida. Treated as one of the most ignored regions of Delhi, East Delhi was home to only a selected few in the past having a low-income. The area was deprived of the basic facilities of schools, hospitals and entertainment options. However, at present, the area has been developed into a decent residential area leaving behind the cluttered and overshadowed structures and brimming with all the basic facilities. The property prices in East Delhi are also increasing gradually in the wake of attention it is getting from the real estate developers.• Real Estate in North Delhi
North Delhi property prices are also soaring high as it houses Delhi University. Presence of Azadpur Mandi also adds to the price hike as a supplier of vegetables and fruits to the whole of Delhi and NCR region. An excellent metro and road connectivity further make North Delhi a costlier affair. Azadpur, Kashmere Gate, Pitampura, Inderlok, Ashok Vihar, Model Town, Rohini, Shalimar Bagh, Civil Lines, Kingsway Camp, Rajiv Nagar, Ghanta Ghar, Mukherjee Nagar, Rani Bagh, Wazirpur, Tees Hazari, Shakti Nagar, Prashant Vihar and Central Secretariat are some of the areas in North Delhi. The area faces high demand for PG accommodation as the area has an abundance of DU students.• Real Estate in South Delhi
South Delhi is a preferred residential location in Delhi. It includes Amar Colony, Ashram, Bhikaji Cama Place, Delhi Cantt, Anand Lok, Bhogal, C.R.Park, East of Kailash, Bijwasan, Alaknanda, Defence Colony, Friends Colony, Dilshad Garden, Jasola Vihar, Lajpat Nagar, Nehru Place, New Friends Colony, Safdarjung Enclave, Sarojini Nagar, Malviya Nagar, Hauz Khas, Jungpura, R.K.Puram, Vasant Kunj, South Extension, Vasant Vihar, Kalkaji, Munirka, Golf Link, Okhla, Green Park, Panchsheel Park, Gautam Nagar, Khan Market, Saket, Mehrauli, Niti Bagh, Sheikh Sarai, Mahipalpur, Netaji Nagar, Nizamuddin, Sangam Vihar etc. Known as the first residential choice due to its location, South Delhi is a favorite among corporates, government employees and businessmen alike. The prices of properties in South Delhi are also soaring higher and higher as it houses several posh areas.• Real Estate in West Delhi
Real estate in Dwarka, West Delhi, is having a roller-coaster ride. The planned structure and sound infrastructure has made Dwarka a favorite for residential property. The whole subcity is full of apartment buildings offering lucrative amenities. The prices of the properties in Dwarka are becoming menacingly expensive. Even the commercial and retail sectors are in an expansion mode. Other areas falling under West Delhi for residential purpose are Janakpuri, Pitampura, Punjabi Bagh, Rajouri Garden, Rohini and Patel Nagar.Real estate in Delhi is moving ahead at a progressive rate setting new landmarks by promoting lifestyles matching international standards. The ‘national capital’ status gives additional momentum to the real estate in Delhi, a metropolitan city with a perfect mix of old and new!