Expanding it’s dimensions

[Talburt87]

Kochi real estate is doing wonderfully well, but so often novice investors focus completely on real estate investing techniques that they forget to study whether the deal is good or not. Identifying a good deal takes research, education and, above all, experience. A general principle one can apply to find out whether a potential real estate purchase is a good deal or not is to look at it’s appreciation in the past few years.

Leverage is a crucial aspect in investing because the less money you put down on each property, the more properties you can buy. The moment the value of the property go up your returns goes up exponentially. However, if the properties prices of the property tumble you are likely to incur a lot of debt on the property. It is obvious that a situation like this will result in negative cash flow. Real estate is known to be cyclical in nature, and negative cash flow will therefore be only a short term problem which and can be managed if you have alternative source of income or a cash reserve. If you are a long-term player, leverage will generally work wonders for you if your investment appreciates in the long run and your income from the properties can pay for most of the monthly debt service.

If you are interested in cashing in on your property by selling it then remember a rule that people are distracted and have a short attention span. If you’re creating a marketing piece with text, make sure to attract the reader with your tag line. The first sentence of an email subject line or a promotional letter or the headline of an online ad is the most vital of the whole piece. It goes without saying that if the customer never starts reading there is no chance of them reading anything beyond. Make sure you don’t overload your potential customer with unnecessary data in a flyer or advertisement.