Options are an alternative form of offer. A
potential buyer offers a sum, an "option consideration", in order to
effectively take a property off the market for a period of time. Option offers
generally run anywhere from a few hundred to a few thousand dollars or rupees
in real estate India and other, but higher or lower amounts are possible. Some
options bind one party only; some are called "bilateral", requiring
each to adhere to contractually specified conditions. Conditions involve
contingencies around inspections, financing, and always have a time limit.
Every deal is a little different
and, of course, if the option isn't exercised by the specified time limit, the
optionee - the potential buyer - forfeits the money. Risky, but potentially
rewarding, since you've effectively eliminated alternative bidders. One
advantage to the optioner is the time to find a buyer for the property itself,
then selling the option. This eliminates the need to pay for transactions
costs, keeps debt low, etc. Do your homework, first.
To fill out the other part of
your portfolio, nothing beats the "real" in real estate.
Historically, buying and selling real property in India or other countries, or
even long-term owning, has proven one of the most profitable, least risky
investments available in real estate India sector and other
countries. Observe carefully the words "least risky". That doesn't
mean "zero risk" - there's no such thing in investing. Prices can
always go up or down, relative to other goods and investment channels.
Be willing to get educated about
the market and the law. Make purchases while minimizing costs like real estate
India agent fees, repairs, interest rates, etc. Have sufficient cash and other
liquid assets to be able to hold until the time to sell is right. Follow these
guidelines and you'll never have any reason to regret making real estate
investing a major portion of your portfolio
