Real estate for now is giving better returns than even gold. To advice someone to invest in realty is needless as most people have real estate at the top of their list of investment options. The returns can be big if you invest wisely and maybe not so big if you invest in an offhand manner. But returns are more or less sure. However once you invest, you cannot expect the money to grow all by itself. If you really want to make a profit you have to take care of a few simple things and keep them constantly in mind, especially if your aim is mainly to make capital gains than to have real estate only as a back up security plan.How long to hold on?If you have bought a property with the sole intention of making a profit by flipping it,you should know just the amount of time you should wait before you can hope to make a good profit by selling it. In 2008 when the housing market was growing at a frenzied pace, investors could make a profit even by selling the property within a span of few month. But now as the economy has slowed down significantly, it is advisable to hold on to a piece of property for at least three to five years before expecting to make a gain by selling it.Also short term flipping is now limited to very few markets. Delhi NCR is one of the few markets that investors can still make a profit out of short term flipping.The cost of transaction and applicable taxes can also determine the period for which one has to or wants to hold on to a property after investment. Holding on to a property longer than 3 years proves beneficial from the tax point of view as after three years the money earned through selling the property is considered a long term capital gain and is taxed at 20% of the purchase price which is adjusted to inflation. On the other hand capital gained by selling the property before the lapse of three years is considered a profit that is added to the seller’s income and taxed at the rate usually applicable.When to sell?In case you have invested in an under construction property the best capital gains can be made by selling the property at the time it is nearly complete. The time frame for selling for profit can also be bound to one year before or after the property is ready for possession.Local market trends and infrastructural developments are also important when it come to determining an exit moment from the investment. Local market analysis is important to fix the right price for the sale. If prices show a growing trend then it can be the indicator of a good time to sale the asset. If there is supposed to an infrastructural development in the locality in the near future then that can lead to a growth spurt. Missing out on such an opportunity can only be equated to pure foolishness.How much return to expect?Real estate investment involves more speculation and involvement of the investor than fixed income instruments such as government securities and fixed deposits. Therefore an investor expects 3 to 4% higher returns from a real estate investment than that is obtainable from investment in other assets.However it is better to set a target of return before someone jumps into investing. Though there is no yardstick for deciding a good real estate investment return, the expectations should be set by a market valuation rather than setting a dream figure based on popular opinion and waiting till the property price reaches there.займ на карту без отказов круглосуточновзять кредит онлайн