Real estate investment in property is less volatile then investing in the share market. As your property grows in value, your capital grows and you also get good dividends. There is a growing demand for residential properties even in the suburbs due to the overly crowded cities. Investing in Residential Property has always been a good investment as it gives a sense of security to you and gives the option of getting good equity income from it. You can either have it as your dream home or you can opt for renting or leasing it out to get more dividends out of it.

There are usually two types of Investments in Residential Investments.

Self Occupied.
A self occupied property generally yields returns after you sell it. The returns depend upon various property escalation factors like when you bought the property, when you sell it, what is the market rate is, the scope for development of the area and others. You don??t get dividends from this, but the net profit through selling after some time would be great.

To Be Leased Out
When you lease out, the returns typically vary from 5% - 7% annually only on the basis of rent received per year. The property escalation factors play a vital role here also. With a lot of multinational companies, foreigners, banks etc in the market it is very easy to buy an apartment and lease the same out.

Usually in residential property investment, the strategy is to buy the property in the suburbs, rather than the expensive urban area, and in due course of time sell it when the rate increases. There are a lot of property escalation factors like commercial development of that area, migration of a large number of people due to overly crowded city areas, industrial expansion, accessibility through transportation, availability of essential services like hospitals nearby and others which could increase the rate of your residential property. So, it is always a wise option to invest judiciously in residential property.