Real estate, this is a term that you must have read or heard somewhere. Its simple meaning is the business of selling land or houses, which deals in their management, operation and investment. Go to Delhi, Mumbai, New York, Shanghai, Hong Kong or any city in the world, real estate has become a business of millions of dollars. From one BHK flats worth 10 to 20 lakhs to apartments worth billions, houses are being built in real estate keeping in mind the needs and luxuries of the people.
Amenities available in real estate
These include every facility that makes you feel luxurious like gym, swimming pool, golf course, mini shopping complex, medical facilities, clubs, sports areas, gardens. Whenever you go to any city, the big buildings that are being built are all part of real estate, which includes apartments, hospitals, shopping complexes, flats, etc. By 2019, the Indian real estate business had crossed $6 billion dollars, and is still growing.
How to Start a Real Estate Business
Let’s know step by step. First of all, there is a need to develop an effective idea. Real estate is a field where there is a lot of competition. Go to any city, you will see someone doing this business. If you want to be successful in this field, then you will have to identify your strength, your weakness and your interest. The most important thing in real estate is the selection of location. Choose a place where you can convince people that if they invest in property, purchase land or buy a flat or apartment at that place, what facilities will they get, and why should they buy your property?
Research for Success in Real Estate
There are many questions that need to be answered to satisfy him, and for this you will have to do some research on where other builders or real estate developers have worked or are working and what is their response among the public? Apart from this, your success rate will also depend a lot on the type of customers you want to make your buyers. Do you want to give the middle class their dream home, or a status symbol to the upper class? You will have to get the construction done moving forward on the same idea.
Importance of Planning in Real Estate Business
Number two is execution without planning means failure, yes. No matter how small the business is, there is investment in it, so to convert it into profit, solid planning is required. Same is the case with real estate. Now it is not like opening a tea shop where you are serving tea for ₹10, that is why from project handling to construction, quality assurance, delivery, then management, every time you have to win the trust of your customer, that is why these things must be there in your plan. The first is market research, what kind of people do you want to serve in your business, what is the segment of your product, geographical location and what needs of the people do you want to fulfill, all this should be documented with you, so that you can tell your purpose. As a customer, you should visit real estate projects, bring their booklet from them so that you get a brief idea about what and what kind of service other competitors are providing.
Sales and Marketing Plan
Second is the sales and marketing plan, what are you doing differently in your real estate business, why is it different from others, how will you do your marketing, and how will your products sell? For this you will need a professional team.
Management Plan
The third is the management plan. It is not difficult to reach the heights. But staying there is challenging. It is the same with real estate. You have prepared your project and people have bought it. But your success rate will depend a lot on its management and maintenance. For this also you will have to recruit people who will take care of all these things, which will also include legal issues.
financial plan
Number four is the financial plan. To finance or manage your investment in real estate, there are three important financial documents that are required: income statement, balance sheet, and cash flow statement.
Seek legal advice
Number five is to hire a lawyer from the beginning of the project, yes this is very important. In real estate you will need a lawyer at every step, to buy land, do paperwork, handle court cases and other legal issues, a lawyer as a guide will prove to be your helping hand at every single step, if you find a trustworthy lawyer then you can also make him your business partner.
Real Estate Business License
Number six is the real estate business license. Whether you do real estate business in your home town or in any other big city, you have to get a license to become a real estate developer, because many times unfortunate incidents also happen on construction sites, and sometimes workers also lose their lives. In such a situation, it would be wisest to work legally, and if your paper work is complete and you are a license holder, then it is also easy to win the trust of customers, that is why you can register your business firm as a private limited or limited liability partnership, and GST registration is also necessary for tax payment. To get a license, you have to apply under RERA or Real Estate Regulation Act, you can apply for a license in your state and can also take the help of your lawyer in this. The validity of the license is 5 years, keep this in mind.
Importance of website for growing business
Number seven is that an authentic website will increase your business, yes. Nowadays, before buying anything, people have already done their research work on the internet, that is why if you want to give exposure to your business, then get an authentic website made, where there will be complete and correct information about your project, because most of the customers first visit the website, then go somewhere and reach the construction site.
Marketing and branding are important
Number eight is that your business rocket will also need a launch pad. This means that you have brought a product to the market, and to tell this to people, you will also have to do your branding and marketing. By tying up with print media, social media, influencers and popular TV and radio, you can reach your potential buyers, and lucky draws or other attractive offers will also help you reach customers, so you can work on some such ideas, and now after knowing so much, let’s talk about the benefits of real estate business.
Advantages of Real Estate Business
So first of all, real estate has many benefits, such as it is a guaranteed source of income in which investment made with proper planning always gives you good returns. You can sell your projects as well as rent them out, which will give you a fixed income for years. Even if the property does not sell, there will be no shortage of people living on rent in good locations.
Economic Benefits
Secondly, in today’s time, investing money in land property and real estate is a money making business because their price keeps on increasing day by day, that is why their resale value is quite high, from which you can earn a lot of money.
Social standing
Thirdly, by getting into the real estate business, your status in society also increases a lot, and the property you have built remains yours forever, which you can buy or sell as per your need, it also gives you and your family a secure future financially.
tax benefits
Number four comes, by investing in real estate, the government also gives you tax benefits, if someone buys a house up to ₹ crores, then he gets a lot of tax exemption which is also valid till June 2021. Apart from this, what other tax benefits you will get, you can see it in the Atmanirbhar Package 3.0 of the Finance Ministry.
Loan Facility
Along with this, now we know that real estate developers get loans from banks, yes. If you want to try your luck in real estate business, but are thinking that you do not have capital or funds, then now you can start your project by taking a loan from the bank, like in construction finance or project finance, PNB Housing provides direct finance facility for real estate developers, you can check its details on non-home loans on www.pnbhousing.com . Apart from this, SBI also provides loans for commercial real estate in its home loan schemes.
Career prospects in real estate sector
After this, let us talk further about the career prospects in the real estate sector. Apart from business, real estate is a growing sector where there are many different career options, in which with the right knowledge and skills, you can get better job offers, marketing, finance, interiors, engineering, customer relationship managers and analysts. These are some experts without whom no real estate developer will be able to think of moving forward, because like other things, your house is also a product, whose right marketing only gives you your potential buyer, for which skilled and professional sales and marketing people will be needed, who can achieve your business target, similarly where and how to invest your capital, how to utilize it and how to get more output in less budget. For this, you will also need a capable finance team so that you can increase business profit, now where construction will take place, there will also be a need for engineers, interior designers, managers and agents for the supply of necessary things, so we have learned what are the career prospects.
Risks in Real Estate Business
But at the same time, real estate is a risky business, meaning that like other businesses, real estate also has many risk factors. In this business, you have to invest lakhs and crores of rupees, which requires a lot of courage, let’s see what can be some risk factors of this sector.
The first is that many people take a lot of loans to start their business in this sector. In such a situation, if the investment is made at the wrong location or with the wrong people, then the possibility of losing money increases a lot and the liability increases a lot.
Number two, it is not that you will get customers as soon as you complete your project. Many times developers have to wait for years to sell or rent their projects at the right price, that is why you should also have patience.
Number three is that many times, due to lack of proper research or by getting influenced by people or agents, work starts on such land property which turns out to be illegal or on which a court case is going on or that place is in a restricted area where many government limitations are applicable, hence every kind of investigation before purchasing land will make your investment secure.
So if all these risk factors are managed properly, then real estate is like a hen that lays golden eggs, in which if you work with patience, then in the long term you can play with lakhs and crores, because people are going to big cities for jobs and better lifestyle and are also settling down. Now buying land in a big city and building a house is not everyone’s cup of tea, that is why the culture of flats and apartments is increasing, and the real estate industry is also growing a lot in which both wealth and fame can be earned.
