During uncertain and turbulent times, the one place that offers comfort and safety is ‘home’. With job losses and economic cataclysm, paying rental for homes suddenly became a financial concern. Home loan borrowers on the other hand had an option to avail EMI moratorium making it beneficial over rental payouts.
Meticulous consideration and analysis shows that Real Estate is the most advantageous long-term investment as compared to other modes, even during the roughest market conditions that we have witnessed. It’s not about just the pandemic, for real estate is considered to be a stable asset class and a preferred investment option; especially in a volatile market scenario but for such obvious reasons too:
For our Indian society, owning real estate adds to the sentimental value. It is where the entire family stays and business grows. Most thoughtful yet emotional decision that brings sense of pride is undoubtedly, a real estate investment.
Real estate investment is considered as the least varying asset it remains unchanged due to market inconstancy. This is even more apt in the current situation of markets crashing. If the investment is done wisely, you will not get paranoid with the changing market scenario outside.
The value appreciation offered by real estate properties makes it appealing for investment in the long run. Most people have built wealth by investing in Real Estate.
Research says that rental yields from a real estate investment is higher as compared to traditional sources and modes of investment.
Cheaper home loans have helped people to buy their dream homes. The lower interest rates on home loans offered by banks have also helped the industry at large. The Reserve Bank of India (RBI) has lowered its repo rate by 115 basis points (bps) since March 2020 interest rates have come down to around 7%, making the home loans cheaper.
The ideal investments for hedging against inflation include those that maintain their value during inflation or that increase in value over a specified period of time. Real Estate assets are widely hailed as a Hedge Against Inflation as it is unaffected to the changing purchasing power of a rupee.
An asset that is immobile providing reassurance and contentment over other financial assets not just for a short term but especially long term. It is a usable asset either by occupying it or leasing it.
Generally banks choose long term, secured asset such as Real Estate in case if a collateral is required to raise fund.
The biggest factor in real estate investments is the need for proper due diligence, as not all properties in all locations may offer similar returns. Real estate can be a great tangible investment option, especially in the long term. Make it a viable option all be it with some strong fundamental research, guidance and professional consultation if required before purchasing.
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