What Is a Real Estate Mutual Fund?

A real estate mutual fund is a type of investment made up of securities, usually stocks, of companies that purchase real estate with money collected from investors. Factors affecting the return of real estate mutual funds include the real estate market in general, housing starts, residential and commercial vacancy rates and interest rates. 

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Function: According to survey, real estate mutual funds "tend to focus their investment strategy on real estate investment trusts (REITS) and real estate companies." real estate investment trusts are companies that buy and manage real estate with funds collected from investors. Real estatecompanies run the gamut, from firms that sell real estate to firms that support real estate ventures, like real estate software providers and property management companies. A real estate mutual fund can include shares of stocks in a number of real estate investment trusts and in a number of real estate companies.

Advantage: Real estate mutual funds are an alternative to purchasing investment property, especially if you want to limit your investment, level of risk and involvement in management. They are also an alternative to real estate investment trusts if your goal is for your investment to continue to grow; the IRS requires real estate investment trusts to give all profits back to the investors annually, which means that the profits are subject to federal tax annually. Profit on mutual funds remains in the fund unless you sell. Real estate mutual funds, like all mutual funds and unlike real estate itself, are relatively liquid. You can usually sell them in one day.

Disadvantage: When you own real estate mutual funds, you have no role in deciding what companies are invested in or how they are run. Unlike directly owning stock in a company, you do not have voting privileges on issues having to do with the fund. Your role is diminished compared to most other types of real estate investment. You do not receive tax benefits like depreciation, although if you hold your mutual fund investments for more than a year your profits are taxed at the capital gains rate, just like actual real estate.

If you decide you'd like to invest in real estate mutual funds, do your research first. Use online stock screener to find funds specializing in real estate. Look at the funds' track records: see how they have performed over short-, mid- and long-term periods of time. Read the fund's prospectus, a report covering all the basics of a fund: who runs it, what the fees are, what the minimum investment amount is and what individual companies the trust owns. The prospectus will also describe the level of risk associated with the fund and define the fund's goals.

Investing in real estateinvestment trusts and buying a property yourself are the two obvious alternatives to real estate mutual funds. Real estate investment trusts are a good transition into actually purchasing investment property; you can actually go visit properties the real estate investment trust owns and read expense and income statements for them. One way to begin with your own rental property is to buy a new home and turn your former home into a rental rather than selling it; this way, you're already familiar with the expenses and taxes owed on the property, and can set the rent accordingly.

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Investment In Real Estate In India :A wise Decision

Indian real estate has huge potential in almost every sector especially commercial, residential, retail, industrial, hospitality, healthcare etc. However, the major developments in this sector in India are mainly the townships, residential units, shopping malls, offices, retail stores and commercial complexes.

The major growth has come due to increasing purchasing power, favorable demographics, existence of client friendly banks and housing finance corporations,

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professionalism during this sector and favorable reforms initiated by the government to attract global investors.

Real estate investment in India is primarily a long term investment providing low liquidity to an association or investor. Investors can look at renting out their property to bring consistency in revenues. This can also reduce the burden of EMIs for a property purchased with a loan. According to a survey conducted by Cosmic Structures LTD, sixty five percent of working individuals prefer this sector as a mode of long term investment.

There are many banks and financial institutions in India that provide loans at attractive rate of interest to the builders and Property dealers. For example, HDFC Property Fund, Axis home loan, Kotak Mahindra Realty Fund, and India Advantage Fund (ICICI), give the funds for this sector development to the builders and developers for construction.

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NRI real estate business is additionally on the increase in India. Recession had negligible impact on this sector. Therefore, the sector is opening up more and more investment opportunities for each domestic still as foreign investors This sector is a very profitable venture, as the profits of investors have almost doubled or have derived hundred percent profit in the residential sectors.

The preferable time horizon for investment in this sector is four to seven years of higher returns. The industry is popular for providing the second largest employment just after agriculture. One of the major reasons for this development is the policies taken by the Government of India


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Building or Buying a New Home

If you are thinking of buying or building a complete new home, you are in luck as a result of this article was written for you! In fact, many of my clients have determined the market has become pretty much picked over and therefore the majority of what is left is either over-priced or junk. Recently I have been fielding plenty of questions on buying brand new construction or building a new home, so I've set to help you by outlining the method.

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STEP 1: Get pre-approved for your construction loan or to get the freshly engineered home once it's created by the builder. This is especially important new construction! If you are buying a lot and building a home, the construction loan underwriting process is much tougher than if you are buying an already built new home. This usually needs a lot of deposit, higher credit and lower debt to financial gain ratios. I've had many clients qualify to buy an existing home but do not qualify for a construction loan.

STEP 2: Locate a community and lot to make your dream home on. Once your mortgage (construction or take out financing) is approved then you recognize what quantity you are comfortable and capable borrowing and can choose a lot.

STEP 3: Build your home! This is a general timeline and guide to the key steps that occur during the course of construction.

Building Process:

Customize house plan w/ builder

Color Orientation- Coordinator & suppliers w/ options pricing (1-2 weeks)

Pre Construction Meeting (3-4 weeks)

Color Selection Meeting- Finalize decisions (6-7 Weeks)

Start Dig (7-8 weeks)

Electrical/ Flat-work Meeting- Discuss location of lights, plugs, options & concrete (11-12 weeks)

Walk through Meeting- Confirm upgrades are in place, create punch list of missing items (18-20 weeks)

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Closing & Completion of Home- Time will depend on size & scope of home (19-21 weeks)

STEP 4: Close on your home and move in If you have done a construction loan in your name then you already own the house and you only move in. If you've got chosen to the builder construct the house for you, then this can be after you get your put off loan and truly purchase the home. Our goal is to have your loan closed the same day the city issues the Certificate of Occupancy so you can move in immediately.

So that's it, you are now more educated than most people who have done this process several times over. Congratulations!

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What Factors Affect Home Resale Value? Simple Home Improvements to Increase Your Home's Value

It's never too early to start out considering selling your home, and many of real estate experts say that the best time to start is before you even buy it. If you are buying a new home or flat, chances are high that you are going to be selling it in five, ten, or twenty years from current. While reselling may be far from the top of your priority list, there are a few interesting facts to keep in mind. Some attractive options for your new home would possibly prove to be investments that do not pay off once it comes time to sell, whereas different options that you just overlook currently might have a positive result on your home's worth over time.

When looking for a new home, your high priority ought to still be your own desires and needs; however it cannot hurt to possess "resale value" within the back of your mind. After all, a home is a huge purchase, and it will prove to be a good investment.

All features of a home will essentially be built into the price. If you are doing your best to be told regarding truth worth of those options, particularly their effects on the worth over a few years, you'll have an improved plan of what proportion you ought to be paying at the start.

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Features that add to your home resale value

Good location

Real estate consultants agree that a good location is that the biggest factor adding value to a home. The home should be in an exceedingly growing community; close to freeways and industrial areas, but not so close that the neighborhood is too noisy or congested. It is also a good idea to check city records for any planned land use action which will have an effect on the world.

Large kitchen

The kitchen is one of the most important rooms in the house. It's a central location for gatherings, and it's a room in which you spend a great deal of time. Large kitchens that are open, accessible, and adjacent to dining and family rooms will add substantially to your home resale value.

Three or four Bedrooms

Bedrooms provide room to spread out, secluded work spaces, or additional house for a growing family. As far as the home resale value is concerned, 3 or four bedrooms are right. If the house has 5 or a more of bedrooms, certify they don't seem to be inflating the value an excessive amount of. You should n’t be paying a lot of additional for a more of rooms, as they will not add considerably to the marketing worth.

Large, rectangular lot

Most buyers are looking for a good sized, rectangular, level lot. Small yards, odd shapes, or sloped lots will decrease the home resale value. There should be enough space in front and back yards for an individual to contemplate them accessible. Enough room for decorations or activities is a huge plus.

Closet space

A walk-in closet in the master bedroom is a very desirable feature. Aside from the master bedroom, a home should have enough closet space scattered throughout. A lack of closet space can alienate certain buyers, and depreciate the value of the home.

Two-Car garage

Depending on the placement of the house, a two-car garage is most desirable. If the home is encircled by different homes with larger garages, it'd be best to contemplate a bigger garage size to match. In general, 2 is that the atomic number. More or less may have an effect on the house price in undesirable ways in which.

Hidden, main floorlaundry room

A laundry space should be out of sight to avoid becoming an eyesore, and it should be located on main floor of the house. An easily accessible laundry space will deflate on journeys up and down stairs.

House size vs.surrounding houses

The size of the house can either increase or decrease its value, depending on its location. If the house is a large luxury house surrounded by smaller homes, the surrounding houses will drag down the value over time. On the flip side, if the house is small or medium and it's surrounded by larger homes, the value could increase over time. If you're looking at a home, compare its value with the values of the surrounding homes, keeping size in mind.

The size of the house will either increase or decrease its worth, counting on its location. If the home is a large luxury house surrounded by smaller homes, the surrounding homes houses will drag down the value over time. On the flip aspect, if the home is little or medium and it's surrounded by larger homes, the worth might increase over time. If you are looking at a home, compare its worth with the values of the encircling homes, keeping size in mind.

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Positive Feelings Towards Home ownership on the Rise

The House price as well as the demand for purchasing of house is rising day by day. This year seems to be flying by and has been fueled by a very active market. The Real estate deals in Delhi NCR and other Cities are reporting fantastic sales numbers for the year to date, Cosmic structures limited also doing excellent sale and many new projects are listing soon in Delhi NCR regions. 

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While Prices are still on the rise and some continue to forecast an  upward trend, others are predicting that prices will begin to level off as interest rates have begun to creep up. However, even as the price are changing, the overall sentiment towards home ownership remains positive. A recent survey shows that 7 in 10 Delhities  believe that purchasing a home is a good choice. It also reported that  the purchasing demand of Delhi NCR Real estate especially Residential flat is high in demand.

The Realtor's Association has reported that while the house price as well as the demand of purchasing of house has shown a positive impact on the overall market. We expect prices to continue to rise but they may not escalate at the same speed and will return to normal levels very soon. This can be a very good time to purchase a Home at Delhi, Noida, Gurgaon or overly in Delhi NCR. 

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Some Tips to consider while purchasing a home

Many people have currently noticed that it's an excellent time to shop for a home. Today, we would like to appear at why it would even be an opportune time to sell your house. There are highest five Reasons we tend to believe currently is also an ideal time to place your house on the market.

1.) The Demand Is High

The most recent ExistingHome Sales Report by the National Association of Realtors (NAR) showed a high  increase in sales over the calendar month of 2012; sales have remained on top of year-ago levels for twenty five months. There is a unified consumer and are looking for purchasing home.

2.) Offer Is commencing to Increase

Total housing inventory in the last 6 months rose to a standard level. This represents a 51% increase compared with 43% in Jan. The Places in Noida and Greater Noida is in high Demand and expected to enter positive equity within the next twelve months. Currently The demand is high and before offer will increase could garner you your best value.

3.) New Construction Is coming

Over the last many years, most householders mercantilism their home didn't have to be compelled to contend with a replacement construction project round the block. Because the market is ill , additional and additional builders area unit jumping back in. These ‘shiny’ new homes can once more become competitive as they're a lovely various for several purchasers.

4.) Interest Rates area unit Rising

According to the study Primary Mortgage Market Survey, interest rates for a 30-year mortgage have shot up to four.57% that represents a jump of quite a punctuation since the start of the year. Whether you're moving up or moving down, your housing expense is additional a year from current if a mortgage is important to get your next home.

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