Due to the outbreak of covid-19, people all around the world have suffered a humongous financial and life loss. Not even a single sector, whether it is the education, medical, or property sector has remained safe from the grip of the virus. The challenges posed by the covid wave are likely to derail the real estate sector from its path of recovery in India. Since it is the peak time when real estate is facing an enormous rise in the rates of raw materials like iron and sand. It is assumed that in the coming time property rates are on the verge of rising. So, it is always better to invest in property at this particular time as nobody knows how things are going to unfold in the future.
Now, there are tons of benefits that pull any person to invest in real estate like, investors can easily enjoy the predictable flow of cash, can get excellent returns, numerous benefits from well-chosen assets. Hence, it is quite possible to leverage real estate to build opulence.
Real estate is a wide term where investors can make money through the rental incomes, profits generated from the business campaigns. Money that real estate investors make is a kind of passive income with stable cash flows along with other tax advantages. Even one can invest in real estate through real estate investment trusts which tend to offer a way to invest in property without having your own. So basically considering all these captivating advantages one should invest in real estate.
To clear you with this, here are some of the reasons that might change your decision from reluctance to surety.
High-Value Returns in the Future: It is not like that covid-19 has dented the demand for homes. In fact, the property sector is all set for a remarkable trajectory in the coming times. Homeownership is one of the notable preferences among the new-age millennials. Homes that are efficiently designed with all kinds of facilities are very popular among young people and millennials. They tend to offer them good investments and a sense of security as well.
One of the most important reasons that push people towards investing in the property is generating cash flows. Cash flow can be defined as the net income that individuals produce after operating the expenses and mortgage payments. With time passing by, it is quite obvious that cash flows also increase.
Digitally-Equipped Houses in Demand: Digital transformation has taken remote control over everything. You will not find anything new that is not experiencing the evolvement. Many real estate developers are experimenting with new technologies to improve the user journey. They are trying to create a seamless experience in homes so that one can live in a hassle-free environment. Due to the advancement in technologies, almost everything has started to shift from offline to online which in turn, has created convenience for the buyers.
Now, you can easily book apartments online which are digitally equipped. Houses installed with sensor technology and pre-fixed with the tools that work on the principles of artificial intelligence are what makes digitally houses in demand.
So, digitally equipped houses are going to be the new normal for future investors in real estate.
Secured Asset Investment: Due to the turnaround witnessed by the covid majority of people had to stand by their investment plans in different business and other cryptos as well. Till the times’ scenarios are uncertain, residential investments are one of the safest and secure options available. Since it offers maximum stability.
Even the RBI moratorium has also provided homeowners with a scheme in which they can manage their EMI for the next six months in the lockdown period.
Also, remote working has eliminated the need for people to stay near the offices. Therefore, people are looking for affordable housing options that can give them a space to work.
And, after the stock crash, people are quite reluctant to risk their money in any of these volatile options. That is why real estate seems to be the perfect investment option during these times.
Take Advantage From the Inflation Hedge: Inflation affects every business investment, and one cannot run away when it comes to investing in real estate. But, real estate has a hidden advantage in that, since it never goes out of demand. It always maintains its monetary power. For instance, REITs are the most feasible ways to invest in an inflationary climate. The prices are less likely to be affected when the rates start to rise since operational costs are likely to remain unchanged.
Rise For Rentals: Although the Rentals have dipped in the year 2020, the trajectory curve is not going to remain the same. As the special economic zones(SEZ) which are dedicated zone for business to enjoy the simpler taxes and the legal compliances. SEZs are generally located within the country’s national borders.
There are several SEZs cities like Chennai, Bangalore, Pune, Noida, etc. Once the workforce will be back in these cities, real estate investors can bear the sweet fruit from the spurring demand for rentals.
There are tons of residential projects in Noida that one can invest in now, to have the benefit from tenants coming in the future.
Therefore, it is always smarter to invest in Real Estate, as they are likely to fall even in hard times like this. One can have significant profits from the ongoing additional incomes which can be used as a part of an overall strategy to build wealth.