How to make money from Real Estate?! Finshots Money Playbook - Episode 1! - Finshots Daily

A Guide to Buying and Renting a House in India

Technology is changing how we buy and rent houses by making it cheaper and easier, challenging the old system where powerful brokers charged high fees for everything.

Brokers are a powerful team: Traditionally, real estate brokers have worked together to keep their fees high (like one month's rent), and it's been hard for anyone to offer a lower price.
Tech makes it cheaper: Apps and websites like NoBroker connect people who want to sell or rent their house directly with people who are looking, cutting out the middleman and saving everyone money.
Buying isn't just for living: Most people think of real estate as just buying a house to live in. But buying commercial property, like a small shop or office space, can actually be a much smarter way to make money.
Think before you buy for profit: Buying a house for emotional reasons is great, but if your only goal is to make money, investing in stocks might be a better choice because house prices don't always go up as fast as you think.
Young people are buying homes: Contrary to what some people think, the average age of first-time home buyers is actually getting lower, with many people buying property in their late 20s.
Fun Facts & Key Numbers:
- Fact: In India, people pay a crazy $19 billion in fees to real estate brokers every year.
- Fact: A house you live in (residential property) usually gives you a "rental yield" of 2-3% per year. (This means the annual rent is only 2-3% of the property's total value).
- Fact: A commercial property, like a shop, can give you a rental yield of 8-12%—that's way better!

Quote: "> The myth is, real estate means residential."
- What it Means: The speaker is saying that most people make the mistake of thinking "real estate" is just about buying a house to live in.
- Why it Matters: This is a big deal because he argues that the real money-making opportunity in real estate is often in "commercial" properties—like shops, warehouses, or offices. These are often overlooked by regular people but can be a much better investment.
Quote: "> I think the broker community is very strong and they don't allow anybody to undercut. Because that's how you maintain that fees."
- What it Means: He's explaining that real estate brokers have an unofficial agreement not to compete with each other on price. If one broker tried to charge less, the others would push them out.
- Why it Matters: This shows the main problem his company, NoBroker, was created to solve. By creating a platform where people don't need brokers, technology can break this system and make finding a house much cheaper for everyone.

First, the speaker argues that the old way of finding a house is broken. It's controlled by brokers who work together to charge high fees, making it expensive and inefficient for regular people.
Next, he provides evidence that a technology platform is the perfect solution. It can reach millions of people instantly, connect owners and renters directly, and cut costs because you don't need a physical shop on every street.
Finally, he points out that people should think differently about real estate as an investment. Instead of just buying a house and hoping its value goes up, it can be smarter to invest in stocks or look into commercial properties, which can earn you more money through rent.

Q: Is it always a good idea to buy a house instead of renting?
- A: According to the text, not necessarily. Buying a home for personal and emotional reasons is a great decision. But if your main goal is to make money, the speaker says that stocks often provide a better return. You have to do a lot of homework to find a property that will actually make you a lot of money.
Q: Why is buying a shop or office a better investment than a house?
- A: The text says commercial properties (like shops) give you a much higher "rental yield." This just means the amount of rent you collect each year is a much bigger percentage of the property's price (8-12%) compared to a house (2-3%). Plus, you can often buy a small shop for less money than a whole house.
Q: Has it gotten easier to buy a house over the last 10 years?
- A: Yes, definitely. The speaker says the whole process has become much easier because the search for a home has moved online. Platforms like his make it simple to compare prices and connect directly with owners, which saves a lot of time and money compared to the old way of relying on a local broker.

Why You Should Care: Buying or renting a home is one of the biggest financial steps you'll take in your life. Understanding the basics of how the market works can save you thousands of dollars and a lot of headaches. This is also a cool example of how a smart idea and technology can completely shake up a traditional industry.
Learn More: If you're curious about this, try searching on YouTube for "Is buying a house a good investment?" You'll find lots of simple videos that break down the pros and cons of buying a home versus investing your money in other things, like the stock market.