The global market shares is quite tense, and 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 and enhance capital 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 and enhance capital.
Here’s are some points on why real estate can prove to be the best investment proposition today.
LUCRATIVE DEALS: Real Estate Developers are sitting on a large amount of unsold units that is affecting their cash flows and eroding profitability. Moreover, price growth has been more or less flat in the major Indian cities for more than a year. To break out of this deadlock, players are offering handsome discounts and buyer-friendly home loan deals that can actually make a lot of sense in today’s market conditions. In short, this is a buyer’s market.
A STABLE ASSET: Unlike the share market, which is speculative and highly volatile, real estate market is quite stable. Even if the value of property comes down, it is a gradual process and over a long period of time. This presents a much more favorable scenario than the equity market, which changes 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 and even lead to indebtedness.
RENTAL INCOME OPPORTUNITY: Property purchased in 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 quo 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.
A Tangible Asset: The final and most decisive rationale for real estate investment is the fact that property is a fixed asset that one can touch, see, feel and put to work. One can either occupy it or rent it out, but it is at all times available for every kind of physical verification. Real estate becomes a part of one’s legacy, which can be passed on to the next generations of one’s family. Even though the investment required for real estate is larger than most other instruments, both the returns and the assurance of a tangible, physical and performing asset are at all times more than consummate with the initial outlay.