What make one take a decision for a profitable investment?
Is it the intuition, experience or simple calculations?
When making a decision towards profitable investments, the main constraint and consideration is return on investment. At least this is what I have felt. I have found that a majority of people it is the intuition that comes to them by experience and they make a mental calculation rather than making a pen and paper to find the arithmetic. Passion takes a step further in the decision making.
But recession has suppressed the intuition. Fear has crept in, in its place. As a result, we find decisions are rare and fear is more. People consider that if recession is to continue a bit more than anticipated, what is the point in investment? The recession is a back puller and people are afraid a play in investment; but not everyone and not in every field.
There are a number of fields to invest and it greatly depends on the comfort and confidence one has in each field. But I am sure real estate investment is an all-time gold mine for investors who really follow the main look outs, key opportunities and crux of the situation.
In real estate, invest and reap benefits immediately was possible when there was a boom. But smart investors make good profit even when there is no boom or even when the recession is in force and continue to hold the fort.
I have found that people make good profit my making investment in Industrial Real estate business.
What are the factors that lead to good investment in industrial field?
Location: Location is the foremost thing that makes more money. Location means a specific place in a specific country. Location is influenced by infrastructure, utility and the availability of man power. The prime mover of any industry is power or electricity. Dubai has abundant power and the power generators in Dubai are so efficient that unlike other places in the globe, power is not cut off at any time in the day or night.
Fore sight: Foresight is nothing but vision that entrepreneurs are inspired for an action that sees results not within a day or month. Industrial enterprisers know that. Good locations and prominent storage places are always in demand and they flourish in Dubai free zones or outside.
Look: The plots or facilities preferred by the entrepreneurs are those close to port (for both sea and air transport) and the choice of investors focus on the appearance or overall layout of the property. Taking a proper land and developing might be more beneficial for higher profits.
Happiness and satisfaction: Are you happy with the plot or facility you are investing? It is not out of compulsion that you invest but it is out of your own choice and enthusiasm that you make an investment. If you yourself not satisfied with the location and its premises, things will be difficult and you may not make a good profit.
Confidence: My experience shows that people with high confidence in what they are doing find a success formula always. The confidence level goes up when you are knowledgeable and experts do help in giving you the best advice.
Involvement: Are you involved in the real functions of an industry? Look at what is happening all around and see the possibilities that will attract people to the area. When you are involved in a specific industry or a product you are sure to have a feeling of how it would perform. May be you can seek the expertise from experienced advisors.
Your own involvement in a specific project shall always make it profitable and enjoyable.
Marketing: Anything need good marketing system to make a sale profitable. An investor’s success often depend on how a marketer can help him. Most of the people depend on open market where they don’t want to pay the broker when they sell their property. A smart seller can bring you profits that you have in mind and a poor marketing shall make things bad and sell bad.
Time: Every sale is bound to time and the planning should be scheduled to the most important part of any business; TIME. Yes, an investment of $1million if gives $2 million in a year is much more better than an investment of $ 1million giving a profit of only $ 2 million after 5 years.
But if you think that waiting two years can bring you much more profit, it is always better to wait as real estate investment never comes down if properly chosen.
Several of the good players I have found that investing in industrial sheds or ware houses and reap good margin. The reason is there are many buyers who always wanted to start an industry and not willing to waste their time in searching and construction. The entrepreneurs are looking for locations that are ever green for industries.
Which is that ever green place? Why is it evergreen?
I would say, Dubai stands in the foremost. Dubai has remained a paradise for industrialists ever since the ruler declared Dubai as a tax free state. It remains an ideal location to all destinations in the world and is the most secure land for entrepreneurs.
Use the strength of the time, that is buying cheap now and make large profits shortly after as there is always an influx of industrial entrepreneurs in Dubai.