Emergence of Real Estate Near Dwarka Zone, New Delhi

In the past couple of years, India and Delhi, in particular, has been hard it in the property market due to which it is at it’s all time low. The investors and buyers are since then looking for an opportunity to revive the real estate business. Once such opportunity has presented itself near Dwarka zone of Delhi. Land Pooling Policy (LPP) and its benefits are core to this new development in the market.

According to the Master Plan Delhi (MPD) 2021, the city is coming up with 15 new zones of development on its periphery. Among these zones, 6 are on the policy of land pooling and thus provides the impetus in the revival of property in Delhi. The six zones would be developed around the boundaries of Delhi, thus incorporating the parts of outer Delhi into itself. The L zone, near Dwarka will be the next big thing in land holding business.

The arrival of LPP as the major land policy has able to help urban development in these zones. The residential sectors, as well as the commercial sectors, will see a rise in the L zone. Various new development plans are coming up in this zone. The budget of the middle-class is the genesis behind this idea. In short, due to the huge benefits offered by LPP, builders and government can now work hand in hand to bring luxury living places for the middle class at the most reasonable prices and also at the heart of India, New Delhi.

Real estate is not just a capital market, but it has to so much to do with the sentiments and understanding of life in general. Also, the role of government in bringing the property forward impacts the market at the highest level. The expert builders, some of whom have been the evergreen in real estate, have shown tremendous faith in this new progress. One needs to see the vastness of L zone and its opportunities in real estate to understand that this might be one of the golden and lifetime opportunities to invest in land and housing dealings.

One more thing that would benefit real estate in the Dwarka zone is that the nature of planning is such that it would bring people closer to one of the most sought after places to live in, like Dwarka, Gurgaon and South Delhi at a very affordable price with superior infrastructure. The closeness to the international airport and being a part of the capital would give a major push in real estate.

With the rise of real estate in L zone in Delhi, what happens now is this will work as inspiration for the government as well as for the developer entities to bring in similar projects across all over India and thus, bring up the real estate to its full swing.

Common Traits of Successful Real Estate Investors

The most successful real estate investors all share five common traits that others can emulate. These include treating the investments as a business and being extremely knowledgeable about the industry. A successful real estate investor must also be an entrepreneur at heart, be people orientated and be ethical. So if an investor wants to be successful, they might do well to study these traits and try to imitate them in their own lives and businesses.

Treat the Investments as a Business

First and most importantly, a successful investor treats their investments as a business. Successful investors set goals and devise business plans to reach those goals. They do not rely on emotion but only invest after carefully reviewing the facts surrounding the property. In addition, they are dedicated and must use time management skills in order to spend the time necessary to make their business a success.

Knowledgeable about the Industry

A real estate investor must also have significant and in-depth knowledge of the industry. Investors must do their research so that they know their markets. The better they know the markets the better they are able to predict trends. In addition, successful investors tend to specialize in a niche which increases their knowledge base. Plus, they are constantly studying and learning because they know that the market is dynamic.

Entrepreneurs at Heart

At heart, a successful real estate investor must be an entrepreneur. This means that these investors have a vision and look for opportunities to make their vision a reality. They understand that it takes money to make money and are willing to take calculated risks to reach their goals. In addition, they possess an independent nature and want to make their own decisions; they want to be their own boss and are willing to take the blame and the credit for their decisions.

People Orientated

People are a major part of any successful real estate investor’s life. These investors tend to have strong family connections that support their business. They also have a huge networking system. In fact, the larger the network of partners, the more successful the investors tend to be. Plus, they have excellent communication skills and are able to read people; something which helps tremendously when it comes to negotiations.

A Strong Ethical Sense

Finally, a successful real estate investor must possess a code of ethics or they are not likely to remain successful. That’s because much of an investor’s business is based on reputation. People want to deal with those who are honest and trustworthy. As a result, a good reputation will open doors to business deals whereas a poor reputation will close them. Plus, treating people ethically will result in repeat business.

In the end, there seems to be many different niches a real estate investor can specialize in. However, the most successful ones all share five common traits. These traits include treating the investments as a business and constantly working to improve their knowledge of the market. They also possess an entrepreneurial spirit and are extremely people orientated. Finally, they are ethical and depend on their reputations to build their businesses. Anyone seeking success in this field would do well to mimic these traits.

Real Estate Investment Blueprint

Real estate is probably one of the best investments you can make for wealth creation over time. Right now many people have cashed out of the stock market and are hesitant to re-invest for various and in some cases obvious reasons. Mainly it’s a lack of trust. All markets are mainly influenced by supply and demand. Right now that lack of trust is still evident as the value of shares fluctuate on the stock market. In my opinion the stock market has become a market ruled by emotion and manipulated by those who make their money taking advantage of those emotions. Not a place for the faint of heart or small investors who can’t afford to lose the limited principal (money) they have to work with.

Although real estate is blamed for the recent financial crisis it was really the financial manipulation of the mortgages by those same manipulator types I refer to in the stock market that caused the crisis. In my opinion the actual fundamentals of real estate as an investment are still as solid as they ever were and it will continue to be a great investment and wealth builder for years to come. How ever as in any investment strategy you need a blueprint or plan to follow. Here are some important things to consider.

As in all investment strategies it is not as important what you make as it is what you keep. What you keep is your true return on the investment. What you keep is after expenses and taxes. It is extremely important to start off on the right foot tax wise. Depending on your circumstances and ultimate investment goals. Do you want to own the properties personally or do you want to set up a holding company to own the properties. In some cases you may want two companies a holding companies and an operating company to manage the properties. This is where you start your blueprint and structure your plan in a way that is most advantageous to you tax wise. I strongly recommend consulting with both an accountant and a lawyer for advice. The benefits of a proper tax structure will be substantial as you build your portfolio and eventually decide to cash out for profit.

Next you have to decide what type of investment you want to make and where. In most cases I would recommend income producing as the goal should be to buy income producing real estate with a positive cash flow after expenses and debt service. Also remember the three most important rules in real estate investing location, location and location. Sticking to these rules will guarantee your return when you cash out. I also strongly recommend you connect with a knowledgeable agent in your area. Some one with the experience to work with you and help you find the right properties. (not a friend or relative unless qualified)

Building a successfu portfolio is all about leverage. Simply put buying the most amount of real estate with the least amount of your own money. Your real estate agent should have the ability and knowledge to structure the sale to your benefit tax wise and financing wise. If both the buyer and seller are happy and the only losers are the bank and the tax man. That is the true art of deal making. If your real estate agent can not discuss these options with you intelligently and impress you with their knowledge find another agent.

In closing, put together your blueprint, meet with your team, structure your strategy around the right foundation and then implement your plan. Now is the right time to buy real estate. You will be well rewarded as the next round of inflation erodes the value of so many other investments and the value of your real estate investments double over the next 10 years. Watch for my next article on how leverage and real estate can create wealth and help you retire early.

Yours in real estate

Larry Matthews