Real Estate Investment Essay Example | Topics and Well Written Essays - 1000 words

Real Estate Investment - Essay Example Lack of infrastructure and basic facilities would lead to downfall in prices of the land and investors will lose faith and retract the investment. This would be huge disaster for any businessman. Therefore before putting a land to sale check the basic amenities and infrastructure and the price of the land accordingly. Italy has become a hotspot for real estate business domestically and internationally. The main reason for this is the presence of strong infrastructure and basic facilities like water and electricity. One of the important factors that have increased the real estate corporate is the high rate of ownership. Real estate has become an alternate investment in Italy. A general definition of valuation of property is to state the actual value of the property both according to the government and private (commercial) sector. But government will valuate only landed property and fertile land. While valuating a property government will not consider the commercial demand that property is possessed with. Italy has many heritage monuments. The heritage monuments may fetch income in the form of tourists visiting these monuments. Government earns income with the developing tourism. The income goes to the government treasury, which is utilized in developing the country's economy. Apart from state owned properties commercial and residential ... Commercial show room owners are ready to pay any amount of money to get a place in the most commercially viable areas. The reasons for the properties producing high income is leasing it out or renting the property for a specified period of time. The value of the commercial and office property keeps growing with the development of the city. With increasing number of tourists visiting the revenue increases. Tourism also plays an important in increasing the price of the land. As population of the country increases the cities start expanding and drag the outskirts into city limits. Since outskirts will be a new place to establish, developers raise the property keeping in mind the space required for offices, commercial establishments, military units and staff quarters for employees to reside. Newly established property prices touch the skies means the prices are always soaring high allowing only rich and effluent people to purchase the property. These properties fair well when they are presented up again for resale. The process of buying a property is regulated in Italy. An offer should be made through selling agent once an investor secures the mortgage for the property. A contract will be framed once both the parties agree on the price. At this juncture investor has to deposit 10-30 percent that is mandatory. The deposit is not returned to the investor if pulls out from the contract. If the vendor pulls out he should pay twice the amount that was agreed upon as the deposit. The preliminary contract contains information on basic issues like sale price, details regarding mortgage and completion date. The both parties, which are a legally binding agreement, sign the reservation and the sale is completed on a specific date