What are Real Estates?

REAL ESTATES : Investment in the real estate is popular due to high saleable value after
some years. Such properties include buildings, commercial premises, industrial land,
plantations, farmhouses, agricultural land near cities and so on. Such properties attract the
attention of affluent investors and builders. They purchase such properties at low prices
and do not sale the same unless there is substantial increase in the market prices. The
property owners are willing to wait even for 20 to 30 years for attractive return. During this
period, it is a type of dead investment for the owners. However, the resale price will be
attractive in due course when they can recover four times (or even more) the price paid.
This is how real estate is one attractive as well as profitable avenue for investment
provided the property to be purchased is selected with proper care and foresight.
Liquidity in the case of such properties is limited as quick sale (like sale of shares or
debentures) is neither possible nor profitable. Similarly, documentation formalities are also
lengthy and costly in the case of purchase and sale of real estate properties.