3 Reasons to Invest in Real Estate Now!

Living in the pandemic world is no easy task, and while we are now beginning to accept numerous changes such as social distancing as the new normal, people are now thinking beyond fulfilling their basic needs, and are now moving on to making the best of the opportunities available.

“Change is the only thing constant”- and this has been witnessed with the changing mindset of individuals when they were thrown into the midst of a pandemic, with no clue as to what the future had in store for them.



Although at the onset of the pandemic, the entire focus was on survival and safety, people have since then moved on, and are now once more considering various avenues for investment. While there are numerous avenues that people can choose from, a smart investor would indeed choose real estate, and there are numerous reasons for this. So here we share the top three reasons to invest in real estate now.

REASON 1:

Just a few months ago, life came to a sudden standstill, with most countries across the globe imposing a complete lockdown, with restrictions on movement and travel. This has taken a toll on various sectors, and the real estate industry is no exception to this. With delays in the completion of under-construction projects, property developers are now dependent on the sale of ready to move in premises, and owing to this, price restructuring has become increasingly common, making it a perfect buyers’ market.

Besides this, cash crunch, and other factors have triggered a spurt in the number of distress sale deals, which in turn helps buyers to reap greater returns in the long run. Based on this trend, real estate is comparatively less volatile when compared to investing in stocks and bonds, where the risk factor is quite high.

Below is the graph of impact on real estate stocks


Source:Moneycontrol.com   

REASON 2

Another reason for investing in real estate is the sudden shift in the working models. Work from home is gaining popularity and large organizations have now seen the benefits of working from remote locations. While this indeed helps these organizations to save on valuable resources, and with lesser logistics to handle, space constraints to have been taken care of.

Seeing this as an opportunity to save on rentals, organizations can now function out of smaller premises, with a lesser number of staff being physically present. With this trend, people no longer need to move to metro cities in search of work, and can now comfortably continue working from their home towns.

Cashing in on this trend, many large and small developers are launching new projects in various 2 tier and 3 tier cities. Keeping in mind various factors, the prices of such projects are quite less when compared to investing in a similar project in a metropolitan city.

Being able to buy a dream home at an affordable rate is a major draw for buyers, who see it as an ideal investment, with the promise of huge returns.

REASON 3

Moreover, buying a house as an investment gives promise of steady returns in the form of rentals, especially for premises which are in prime locations, close to educational institutions or industrial areas.

Such premises are often in great demand, as people at the onset of their careers are most often than not, unable to afford a home of their own, and prefer to stay in rental apartments while they are able to save up on capital to invest in their own property. The ever increasing population ensures that there is no dearth of tenants, and a smart investor can be assured of a steady rental income, which is the least affected by fluctuations in the economy and other factors.

So despite greater security, and a promise of greater returns, what is it that makes investors shy away from investing in real estate? Well, the reasons are many, firstly, investors are unaware of where to begin, secondly, the fear of being duped, and not being able to fulfill the seemingly unending red tape is a major deterrent. But let these factors do not dampen your spirits, as there are many realtors who are willing to guide you through the entire process, be it for buying a property or for putting it upon rent. These real estate agents are well aware of the fluctuations in the prices, and the actual value of the property, and with their extensive knowledge and experience, they will ensure that you are able to get the best deal that holds the promise of greater returns.

So hope you liked our top three reasons to invest in real estate now. Do keep watching this space for more updates on the latest trends in the real estate sector, and keep sharing your comments with us in the section below.



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