Why you should give a serious thought to Real Estate Investment
Real estate investment can be a source of recurring returns with periodic increments. Your capital remains protected in the form of tangible property. Further, economic risks and market volatility won’t take their toll on your capital.
Any property is slated to experience periodic value appreciation despite temporary headwinds. If your property is located in prime location, the returns would surpass your expectations. Capital appreciation won’t be dependent on the meticulousness with which your money is managed by discerning managers. The monetary risks get hedged spontaneously.
If you draw an analogy with stocks, you can understand this point better. Suppose, you have invested in a stock that is renowned for providing high returns consistently. One fine morning, the price may fall irrevocably due to indecision on the part of managers, a scandal involving the owner, deliberate sabotaging for illicit gains or the competitor gaining an edge due to better services. Your profits would go down the drain leaving you short-changed. With real estate investment, such prospects are bleak.
Earlier, the chance of falling prey to the devious schemes of unscrupulous builders was significantly high. With the advent of RERA (Real Estate Regulation and Development) Act effective from 1st May’2017, all projects have come under its purview. The Act is meant to protect the interests of gullible investors who previously were being duped by builders by not getting possession of properties within committed time. Freedom from the stranglehold of builders through cleaner transactions has rendered real estate investment more attractive. You can always trust renowned builders like Sancheti for timely project execution.
Diversification of Portfolio
Real estate investment has no correlation with other assets in your financial portfolio. This essentially means that the presence of real estate lowers the risk proposition of your portfolio by offsetting potential pecuniary losses incurred from other equity investments. Further, real estate offers a mosaic of diversification options including residential, commercial, industrial, and retail properties. This offers multiple hedging which protects your capital even while the economy is in the doldrums. Investing in real estate fund further relieves you from making a large down payment initially while allowing you to enjoy all concomitant benefits.
Safeguard against Inflation
Barring the demonetization period, real estate investment has always been a potent instrument to ward off the depreciation of your actual financial worth. Real estate keeps pace with the inflationary trends. Property investment always begets you returns that are at par with existing market dynamics and includes any premium applicable. Higher returns compared to other conventional saving schemes are assured along with periodic appreciation in capital.
Regular Income Flow through Rentals
As an investment vehicle, real estate assures consistent monthly returns apart from periodic capital appreciation. If you have judiciously bought properties in prime locations or at sites which are slated to experience major changes in coming future, you can remain assured of fair rentals with periodic increases. Consider, for example, the Pune area encompassing Pimpri Chinchwad locality where metro rail project would see its completion by 2022. The prices of properties in the vicinity of the project and consequent rental quotient would experience exponential growth after commissioning of metro rail.
Further, you can offset your living expenses with the rental income earned. Once you have conclusively squared off your home loan or paid off property price in its entirety, the rent earned would be pure profit. If you are desirous of investing in Pune region, Sancheti Builders have a number of ongoing projects like DreamCastle where you can own your residential property.
The decision to invest in real estate is entirely yours. However, keeping in perspective the advantages you can realize by putting in your money, you should consider an investment before stocks run out in prime locations.