Real Estate Guidelines

Here are some important points that need to be considered at different stages of decision making during investment, development and maintenance of real estate:

• Deciding How To Use The Property
  Having decided on a property (usually a large stretch):
  Land should be put to suitable use such as agriculture, construction, tourism or mining
  Land has to be developed through proper technology.
• Administering Legal Aspects
  Having decided to proceed after all preliminary analysis:
  Legal authority is to be assured for all real estate transactions
  Holding real estate (ownership, rental, lease or mortgage) attracts duties like taxes to government and public.
• Deciding Whether To Own, Rent, Lease Or Mortgage
  Having decided to deal in real property:
  Money available may be used to occupy a property for personal or other purposes or lend on mortgage
  A property may be purchased, rented or leased for occupation for personal or other purposes
  A property in hand may be sold, let-out, leased-out or mortgaged for money.
• Deciding Between Real Estate And Other Assets 
  Having decided to invest or disinvest:
  Capital available may be invested either into real estate or into another asset like stock, fixed deposit or gold.
  Property owned may be held as investment or sold out to buy another asset.
• Selecting And Pricing A Property
  Having decided how to arrange property:
  A property has to be chosen from many, for occupation by purchase, rent or lease
  A price (or rent) has to be valued for the property.
• Organizing Finance For Real Estate
  Having decided on the property and its development:
  Finance may be required for for short or long term
  Loans may be raised from different sources.
• Maintaining Facilities At Site
  While holding real estate:
  Inventory of facilities such as equipments, installations, water & power supply systems are to be maintained
  Quality and status of buildings, roads, pavement etc are to be maintained. 

Here are the methods of raising real estate finance: 

They are based on creating an interest to the lender in the real property. The lender should be able to obtain an income without having to occupy the property. 

• Joint Venture And Equity Partnership: Owner can offer a share to the investor from the returns viz; rent or yield of the property or profit from sale of the property.
• Mortgage Loan Against Property: Owner can use the property as security for a loan; i.e. lender holds the property by mortgage, earning an interest at particular rate on the value of the loan.
• Sale Or Lease-Back Arrangement: Owner leases the property to lender who recovers funds from returns and hands over property to owner. In another similar arrangement, owner sells the property to lender for an advance loan and balancing payment at later date. 

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