Why Real Estate is a great investment option during this phase

Mumbai - January 19, 2021

It is undeniable that the real estate market is subdued currently, due to the hit it has been experiencing since the onset of the Corona Virus. So for people who have been waiting for the right time to invest in real estate, this is definitely that time!

Why is that?

The Home loan interest rates are now at historic lows – one just can’t have gotten a lower interest rate than this in the past many years; and the interest subvention also is elevated to around 30%, which enables home buyers to afford to obtain home loans of longer tenures.

It is said that real estate is among the industries that have been earmarked for support and sustenance by Indian government, as it is of vital importance. So, there is a high chance that the property prices and price points will rise in future, which makes real-estate investment a smart option in the present.

One important concern for any potential investor is the security in rentals. As a result of the COVID pandemic, a new rental law is reportedly being introduced by the government of India, which will ensure a safe and secure renting - this makes the rental income scenario more shielded and definite, which for any home owner or investor is a welcome advantage, and can eliminate the concerns of the potential investors in relation to this.

Regardless of the recent crisis, real estate is still a great long-term investment. The COVID crisis may have dampened the numbers in the business temporarily, but one cannot deny that investing in real estate has been one of the most successful commercial investments for any individual with a good income, and if you have tenants paying your mortgage, it makes the investment that much more profitable.

If a potential home buyer or investor has a good short-term investment strategy and can buy the property at a low enough price right now, it would be a prudent step to arrange a lease option with tenants. This increases the probability that the tenant will keep the place in good condition, and that in turn can also help increase the resale value in future.

After considering these, if you do decide to invest in real estate, it is recommend that you meet with a trusted local real estate agent - like CN Consultancy in Mumbai, who can help you navigate the real estate market. The real estate market is ever changing and is hardly constant; so to be up to date with it and to know when properties are about to go on the market, a good real estate agent is the one who may have a lead on good properties in your areas of preference, that can be a great buy.