Investing in property requires complete knowledge and some useful strategies which can make the purpose and motive of investment successful in property and housing. Contract between the parties is the first step towards forming of strategies and with this contract the right of both buyer and seller in the contract is protected. Various ways in which contract can save interest of investor and help them form strategies have been mentioned below.
Use of option contracts
Developers or investors in property have been making use of the contract since long and this brings forth lots of opportunities for the investor. With this they get the right of owning or using the property and hence avails every benefit earned from it.
Right to own the property
This contract gives developer the right to purchase a property, but one need not have to be under an obligation to do so. However buyer has to pay a requisite amount of fees in for purchasing property from the vendor or the agent.
Expiry of the contract
As and when the contract to the property expires, developer loses his right in the property and this is the time when he either sells of his property or returns back the property to the original possessor or owner. However, conducting such things may put a cost on the developer, but the cost involved is quite minimal which shall not put any effect on the decision of the developer. Hence this limits the risk of the developer and also enables him to keep or give away possession of the property.
Secure the property
Developer of the property can possess it just like the owner, but only certain amendments have to be made to the contract. The option contract enables the investor to own property without the requirement of giving a negotiated deposit to the owner and then developer shall be assigned the right to use property without the need of actually buying it.
Earning profits from investment
Developer to the property can also add value to the investment before reselling it or without incurring many costs on it. Some of the ways in which investor can earn profit has been discussed below;
- The property held for long can be secured with options contracts. This contract allows the investor to make necessary changes and renovation in the property. Once the property is renovated, then it can be sold at higher prices or can be given on rent as people are constantly searching for houses for rent in Bangalore and other markets to earn a good amount of profit. Once the contract is sold off, the contract is held between new buyer and seller. These apartments are available at much lesser prices, but when they are in the competitive market they are sold at much higher rates or near to original rates.
- The furniture and fixture installed in the property can also be improvised to increase or earn a good value against investment. Incurring continuous renovations at the accommodation and building up something according to taste and preferences of the buyer is an intelligent thing to do, thus making your property a highly demandable component in the market thus leading to huge profits to the investor.
- With option contract, one can earn 100% finance from good financial institution. Herein property is secured under a long term option contract. As the time of expiry of option contract increases, the value of the place may reach to different heights enabling the developer to earn high amount of profit against it.
Thus an option contract will provide some good investment strategies to the investor and will help them earn good returns from the property. In short, all the options contracts entered between developer and investor is profitable for both of them, as it provides security to the vendor and a good amount of profit to the investor.