Why Is Real Estate Back As An Investment Option?
May 26, 2020
The lockdown is affecting nearly every aspect of human life across the nation and as we all are trying to accustom ourselves to the ‘new normal’, these testing times have also given us the luxury of time and an opportunity to take prudent calls, prepare for the time ahead and utilise this time to invest on sources of passive income.
Perhaps this is the time to understand the best investment options during lockdown, where you can start your passive income to secure yours & your family’s future. Although there are options like SIP, Mutual Funds, Shares, etc.; Real Estate has proved to be the most reliable investment option so far considering the conditions of banks, share market crash and no capital appreciation on any other investment instrument that may look safe initially. So, if you are in a financially secure place with healthy savings, investing in real estate now could be advantageous. Here’s how:
Home Loan rates are at an all-time low
The RBI had announced a cut in the repo rate, which has brought down home loan interest rates, as most of the banks have launched repo-rate linked home loans. At present, the repo rate stands at the lowest ever. For those who have sufficient liquidity to invest, this could be a perfect time get your home loan approved.
An appreciating asset for lifetime
Historically, real estate has proved to be an appreciating asset, one which yields fairly good returns on investment. No other option other than real estate provides the best long run investment. When it comes to asset classes, real estate has always been a good bet – be it for regular income in form of rentals, or appreciation in capital value. One of the biggest benefits of owning your own home is the regular rental income it can generate for you with almost 100% certainty.
A tangible asset for income
Another reason why real estate is the best investment strategy is the fact that when you invest in real estate, you actually buy a tangible asset – an income yielding property. While no market is insured against a collapse, including the real estate one, you will always have something physical in case you choose to invest in real estate. Let’s say that in the worst case scenario you can’t find tenants to rent your property or rents are low, you can still turn your income property into your primary home or you can sell it to make profit.
Extraordinary times call for extraordinary deals
You have the opportunity to book a property with never before offers like 100% cashback on booking amount, lucrative payment plans are on offer, savings of lakhs, etc. This is a good time for you to strike a deal that fits your bill.
Remember, with real estate being a lucrative investment option, it is also important to note the following things in a property before investing:
- The credibility of the developer is of prime importance. Always look for the history of the developer, number of delivered projects, awards won, etc.
- Location remains an important factor. One must understand the growth curve of the location before investing.
- Large group housing societies will be a preferred choice as they are self-sufficient and offer great security along with all the comfort within the complex.
Real estate is a distinct asset class that is simple to understand and can reduce the risk and diversify an investor’s portfolio. On its own, real estate offers competitive risk-adjusted returns, with less principal-agent conflict and attractive income streams. So, now is a good time to start browsing online and get yourself familiar with the real estate market.
SOBHA CITY is a premium group housing project on Upper Dwarka Expressway, spread over 39-acre contiguous land parcel with over 8.5 acres of open & green spaces. Hailed as Urban Park Residences, SOBHA CITY offers unmatched amenities within its large complex, like a 90m dia Cricket ground, 0.6 acre of resort style lakelet, 2 clubhouses, over 16 sports & social facilities, and so much more. Also, this big scale development is just minutes away from Dwarka and IGI airport, making it a destination address of Delhi NCR.