Why Real Estate is the Best Investment Even During COVID-19 Induced Socio-Economic Instabilities?
Nobody ever thought that the virus infection outbreak of COVID-19 would disrupt the global economy like the way it has now. Although the lockdown is over and businesses are resuming their services, people still prefer working from their homes due to the prevailing threat. Complete freedom from this virus might not be achievable anytime soon and we should now get accustomed to the new normal. However, the good news is real estate is still one of the best investment options.
Whether you want to make an investment or buy an apartment for yourself, the time is just right. The socio-economic drift has made numerous banks and financial institutions revise regulations and come with investment friendly financial plans.
Here are top few factors that imply time is right to invest in real estate.
Attractive Offers by Developers
Deficit demand for real estate has led to new attractive offers by developers. Builders are now offering lucrative payment plans, lesser interest rates and lower cost of property. Some builders are also offering flats and apartments at their launch price. This makes it easy for you to invest and secure your new home.
Reduced Repo Rate
RBI has declared the repo rates to be reduced by a whopping 0.75%, making the new base rate just 4.4%. This gives you yet another reason to buy yourself a home.
Passive Income to Build a New Asset Class
Numerous small investment options have sprouted out now, which start at very low rates and also offer rental income. This serves as an opportunity for you to build a new asset line in your portfolio, which gives you a secure source of reliable passive income.
Drift in Demand & Supply Chain
Due to reduced demand, the rates are discounted on good construction inventories. This makes it the best time to invest. What the contractors or builders save will be passed on to you in the form of discounted rates on apartments and flats. However, this will remain only until the economic condition settles down. As soon as the bargain reduces, the demand increases.
Invest Now for Extensive ROI
As the market is volatile, the real estate rates are not only falling down but some builders are also offering higher returns on investments, up to 18%. By investing now, you can make the most of this situation, without having to regret later.
Apart from this, focusing on brand integrity is also important. You can take this time to analyze and choose the best dealer to secure your dream asset. Next important factor that most of us overlook is the inflation hedging capacity of the real estate sector. With a positive relationship between real estate demand and GDP growth, investing in real estate helps you to drive higher rents that correspond to increased capital values.
Although real estate falls under a unique asset class, it can be easily understood and is capable of increasing the return profile of the investor’s portfolio. Offering attractive income options, minimal principal-agent conflicts and risk-adjusted returns, real estate is a great investment option now and for the years to come.