Why purchasing a home during lockdown is Safe, Stable, and Secure investment?
Real estate has always been the most preferred investment option because of its good return on investments. It is an asset which is safe and stable even in situation like pandemics.
Initially, there was a kind of reluctance to invest in real estate due to many reasons like shorter returns, high rate of interest on home loans, and it was debated that rental property is inexpensive than buying it. However, with the pandemic calamity that we are facing right now, the mindset of the people will change and they will be more driven towards owning their own home.
Mainly, for the sense of security that it brings with it and that will be the silver lining going ahead. The fact is that while we are witnessing tremendous weakness in the equity markets, the value of properties in the real estate market will remain stable.
Here are some benefits that ensure real estate should be your go-to investment in this lockdown.
Many attractive offers
Recognizing the current situation, developers these days are providing a lot of attractive offers. Prices of properties have already improved in the past few quarters. After the coronavirus outbreak, many real estate developers are further giving discounts & attractive offers to maintain their financial books. For some projects, one is charged 5% to book the property. The rest of the payments will commence after 60 days. It is expected, by that time the crisis will mostly subside.
Greater Returns
With transparency & trust at the crux, 100% safe investment is the need of the hour. As per the National Council of Real Estate Investment Fiduciaries (NCREIF) July 2018 data, private market commercial returned an average of 9.85% over the past five years. This credible performance was achieved, together with low volatility relative to equities and bonds, for highly competitive risk-adjustment returns. Moreover, Real estate is the asset you can hold tangibly which again increases its reliability and ROI, unlike paper money.
Increased liquidity
The positive relationship between GDP growth and demand for real estate stems from the inflation prevarication capability of real estate. As there’s growth in the economy, the demand for real estate derives rents higher and this, in turn, results in higher capital values; making Real Estate a secure investment in that sense. Fortunately, RBI announced for reducing the Repo rate by 75 bps and the new base rate is 4.4%, this will make a sure reduction of the home loan interest rates which is a sentiment booster. Fence-sitters should use this period accurately and look to enter the market actively.
The post-pandemic, it seems that the realty sector in India will be good, the one sector that will emerge as the silver lining in such a dreary scenario. Timing is crucial when one is considering investing in real estate and maybe now it’s the right time. Financial security is the first thing that comes in people’s minds and one must invest their money through numerous avenues. In this lockdown situation, real estate offers you the best bet- security, stability, and safety.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Propertypistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
