Are All Buyers and Sellers Considered Real Estate Investors?
Do you believe that investing in real estate is the same as buying other properties? Or do you think that simply buying a home makes you a real estate investor? If you think so, you are entirely wrong. Most Indians don't know the difference between real estate investment and buying other properties for individual use. In this blog, we will discuss how these two things are entirely different.
Who Is Called A real Estate Investor?
A person who invests in properties to make money out of them, is called a real estate investor. He does not use it for his individual purpose but leases it or sells it when he gets his desired returns. He does not hold any property for years. He trades them in the market to make money out of it.
What Do You Call Real Estate Investment?
When an investor invests in a property with an aim to earn returns out of that property, it counts as a real estate investment. For example, suppose you bought an office space or residential real estate and used it for yourself. You don't get anything from it. But as soon as you rent it or sell it at a higher price. You make profits, which comes under the term 'real estate investment.'
Difference between a buyer and an investor
Buyer: A buyer is someone who purchases property for their individual use. They do not rent it or sell it. They live in it with their family or use it for extra accommodation. Their sole motive runs around having a good accommodation space to live in. On such properties, they do not make any money, and this is why they are counted as buyers or an end user.
Investor: An investor invests in properties to make money and only money. They do not have any other motive. They invest in real estate to earn more money out of it. They hold their property until they get the desired value on it or rent it to earn rentals until they get a buyer who can purchase it at a desired price.
Moreover, an investor sometimes purchases property in bunches and waits for their prices to appreciate. And as soon as he gets it, he sells it and earn crores. This is how a real estate investor works. All investment moves around profit only.
Difference between a seller and an investor
A seller is someone who sells his property to purchase another one or sells to get money for other purposes. It is imperative to know that a seller could be an investor, but an investor is not called a seller. Because whether you are a seller or an investor depends on your motive.
If you are selling your property to book returns or profits, then you are an investor, but as soon as you sell it under compulsion or purchase another property, you are a seller only.
Final Words
In conclusion, real estate lies in its purpose and outcome. Buying a property for personal use makes you a buyer focused on accommodation rather than profit. Contrarily, a real estate investor buys properties with the aim of generating income through rent or sale.
Their strategy revolves around maximising returns, often by trading properties strategically. Understanding these differences is crucial for anyone looking to enter the real estate market, ensuring they align their goals with their actions for optimal financial outcomes.
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