Investment
in real estate can prove to be lucrative if buyers home in on a good location
and find a reliable developer
The global share markets are quite volatile and despite India’s
positive mid-to-long term economic outlook, it is waters. A lot of hard-won
investor wealth has been eroded in the recent past. In these uncertain market
conditions, it makes sense to regenerate one’s faith in real estate investments
which can fortify end capital.
Though the real estate industry has been going through hard
times for more than year now, the hardship is primarily from the seller’s point
of view. For buyers, Indian real estate is more lucrative than it has ever been
before.
Here’s why real estate can prove to be the best investment
proposition today, provided that the buyer has chosen a good location and
reliable developer, and has done a detailed due diligence of the deal:
The right time for
lucrative deals:-
Developers are sitting on a huge amount of unsold inventory
that is affecting unsold inventory that is affecting their cash flows and
eroding profitability. Moreover, price growth has been more or less flat in
major Indian cities for more than a year. To break out of this deadlock,
players are offering handsome discount and buyers-friendly home loan deals that
can actually make a lot of sense in today’s market condition. In short, this is
a buyer’s market. Such
Jaypee GreensWish town Noida Project developed by the jaypee group brings more effective
proposal and offers for Buyers and investors.
A stable asset
Unlike the share market, which is speculative and highly
volatile, the real estate market is quite stable. Even if the value of a
property comes down, it is a gradual process and over a long period time. This
presents a much more favorable scenario than the equity market, which change
its position several times a day. In this sense, real estate investment remain
rock solid, even in adverse market conditions with an extreme scenario of a
nominal loss. The share market does not provide this security, and can in fact
wipe out an entire life’s savings in a day.
Smart Cities
The government has recently announced the list of cities it
wants to develop in to smart cities. Of course, it will take a few years to
initiate the process and complete these undertakings. However, the real estate
market operates on anticipatory sentiment, so the property markets in those
cities will start showing more buoyancy almost immediately; this means that
real estate investments there will yield better returns in the long run, no
matter how the share market performs.
Rental Income
Opportunity
Property purchased in the current scenario can be used to generate
rental income while its potential selling price appreciates over time – or, in
a worst case scenario, remains at status qua at the purchase price. As a lot of
people are desisting from buying new properties in the hope that prices will
come down, or simply because they can’t afford it, the demand for rental homes
is rising steadily.
Tax Savings
With the government as well as the business lobby
success-fully pursuing interest rate cuts, home loans are getting cheaper. Lower
home loan interest outgo and the associated tax benefits on home loan EMIs
generate extra saving.
