Real Estate Investment Essay Example | Topics and Well Written Essays - 2250 words

Real Estate Investment - Essay ExampleOnce the situation changes the another(prenominal) way (as it always does), the higher rates of interest in Italy will compose predominant & the complete in real country may receive a setback. There argon in like manner some(prenominal) instances wherein the seller turns out to be a fraud, who goes absconding after having got the reservation money. The situation is particularly precarious in the show window of costly deals where 20-30% amounts to a large amount of money. Therefore, proper verification of the credentials of the other troupe is a mustiness in order to thwart such occurrences.It is absolutely true to say that a dollar invested today would have an enhanced worth say three years down the line. But, this case is true provided other factors remain fairly constant. For example, if the political situation or the law & order scenario of an country is not alright or gets worse at any time between these years, then concerns among t he vendees or financiers would ultimately work towards the education in the time value of the property. In worse cases, the property may become useless such as I the instance of war or ethnic strife. As Italy has been a fairly peaceful nation, this fear is not supposed to dampen the spirits of investors. But nevertheless, one must always take this aspect into consideration at the time of investment planning.The interest rates in Italy hover in the range of around 2%, which is a bit more than that in the US. Therefore, it is hash out that anyone desirous of seeking a mortgage especially for costlier properties, conduct an efficient forecast abut his/her quittance options in order to avoid problems in the future. In spite of the boom in real estate in Italy, homeowners generally buy their property as something to live in rather than regard it as a form of investment. Therefore, when the need arises for selling that property especially after long periods of stay, the property value is set to fetch much lesser than the prevailing market due to any factors such as the age of the property, the amount of wear & tear, the forecast of the repairing costs that need to be undertaken by the buyer in advance etc. Another major disadvantage of investing in homes in Italy is that the majority of the mortgages are based on variable rates and as such, these interest rates keep changing fro theatre to area or company to company in particular. Therefore, the buyer may end up salaried more while seeking a mortgage loan fro one company while at that place could be others offering it at reduced rates. Thus, this calls for a sense of responsibility on the part of the buyer to have an idea of the interest rates charged by the different mortgage companies. There is also an increasing trend towards direct purchasing through the phone or Internet. There have been instances in the past wherein investors have been duped by phony agents who pose as the real owners of a property or a ct as mediators. The reason has been attributed to the fault on the part of the investor to aver the authenticity of the property or it sellers. In most cases, the investor does not even inspect the site that is proposed to be purchased. The only solution is to verify the property & its seller either by himself or through trusted representatives, usually ones lawyers.In the case of a seller or in case the