Investing in Indian real estate has been anybody’s domain but only a fewer number of people have been able to attain the success that they wanted. People all over the country talk about investing when the property prices and low and selling them when they are high but it takes some serious and firm decision making to be able to do the same. The current growth trend of property values in major Indian cities are falling. For people who are wondering if this is the right time to invest, yes it is. It is advisable to take these depreciating prospects to your advantage and get started with your investments before the prices start to climb.
It might be partially true when people express the concerns of the depreciating growth trend in the market with respect to sites and plots. But, nobody talks about the benefits of renting out a property that you have invested in. Seldom do people acknowledge the fact that buying and selling are not the only means of investing in real estate. Agreed that the profit margin is significantly higher in such cases, but what about the same during the times of depreciation? No sane person will knowingly burn a hole in his/her pocket. Smart investors will diversify their investments, in other words, mitigate the risks. It only means that no matter what the situation is, risk mitigation is possible in real estate investments if planned carefully beforehand.
Despite the falling trend growth, here are the top five reasons to invest your money in Indian real estate today –
A constant source of income:
It would be wise of you to invest your funds on a property and let it out for rent. Renting out a property ensures a constant source of income, which is helpful in the maintenance of the property as well as repayment of the loans if any. An added benefit to it is the fact that your property will be safe and secure as long as someone resides in it. Properties that are newly constructed always bring in higher rent so it would be great for you if you bought a plot and then build a property on it. But it also costs you more. On the other hand, renting a built property that is quite old will generate less rent but is light on your pockets as well. You could also enhance the value of the property by conducting repairs and adding enhancements, which will ensure a higher rental income. It is important to consider which option suits you the best.
Financial security and freedom:
Investing in any property gives you financial security. Be it for your own purpose or for your child’s education, the properties surely do come in handy for future use. Apart from just that, during an emergency, the property could either be mortgaged or sold to get money at short notice. This undoubtedly gives you freedom over expenditures for your livelihood. Also, you will have complete control of making the decision of selling or retaining it. An advantage of owning multiple properties is that you will have the option to shift your residences according to your need, a feature or a luxury that not many people get to experience.
Real estate prices are comparatively low:
The end of the first quarter of 2019 has been a disappointing one for those who were looking forward to selling their properties. But, it was also the best time for new investors as the available price in the market was a bargain for many properties. If you are an investor, skeptical about investing in the real estate, this is an opportunity that needs to be grabbed before it disappears. Now would be the best time to start investing in properties in Tier-1 and Tier-2 cities. Even if you want to do it on a loan basis, the rental income generated will more than cover your monthly repayments. What more could be asked for?
Relatively low-risk investment:
If real estate buying and selling are termed a high-risk venture, renting would be one of the options to mitigate that risk. It also generates a steady income, which could be saved or spent accordingly. Really, this is a no-brainer.
Taxation benefits & cash flow:
Investing in real estate ensures that you have a positive cash flow, but only when you rent your property. An added benefit is that some properties could be bought entirely with just cash, so you can control the cash flow according to your requirements and convenience. Apart from that, an investor can claim tax deductions from the government, so money saved is money gained.
Conclusion:
Do not believe people when they tell you this is not a good time to invest in real estate. With proper knowledge and networking, anybody could ace the art of investing in real estate. If you are a beginner, take help of a realty advisor who can guide you to the best investments according to your budget. Rest of your learning comes from experience as you progress in this business. If Karnataka is the state that you want to invest your money in, plots in Mysore would be your go-to option. For best in class realty services, contact GSS Projects on their website, https://www.gssprojects.in/ .
