Why real estate should be good to investment in this lockdown

Fight continues in the world due to the outbreak of COVID-19. To further maintain the risk from snowballing, the Indian government has indicated to fully affect the lockdown. As a result, nowadays, most of us are working from home. Outside life has come to a grinding halt. No matter how uncomfortable it sounds, it is probably the only way to prevent perennial corona viruses from spreading further.

Although our daily routines have been affected, this does not mean that people should lock themselves inside their homes, stop all their plans and only watch worrying news on TV about this threat. These are some of the best times when one can spend time with family, do various hobbies and introspection. The current situation is an ideal time to think about investing in sources of passive income. Eventually, some of the best opportunities emerge from a crisis.

Zoning on various options can be seen in various options like term plans, stock market and real estate. While every investment option has its pros and cons, as of now, when the stock market is recessionary and the banking sector is in a tailspin, real estate can be a great asset to place bets on. If anyone wants to do it risk-free yet, makes a commendable return, with many residential and commercial real estate options available.

Full of attractive offers: Recognizing this opportunity, developers are coming up with many attractive offers. Property prices have already corrected in the last few quarters. After COVID, many developers are offering further discounts and attractive offers to maintain their financial books. There are projects where one now needs to pay 5% to book a property. The remaining payments will start after 60 days. By that time, it is expected that the crisis will mostly end.

However, such plans are a fleeting event that developers are launching to boost sentiment. Prices have already come down and once the situation returns to normal, such attractive schemes will also be lost. Therefore, this may be the best time to buy real estate. It should not be surprising if one gets ready-to-use assets for a price equal to a new launch.

Higher yields: Real estate can offer risk-thrilling competitive returns. Although residential real estate has been stable in recent years, commercial real estate has been issuing attractive returns. A commercial property in a prime location can easily give an average annual appreciation of around 7-10%. At a time when share prices and financial markets are volatile, such a comeback can be a game-changer.

Concurrent Rental Income: Real estate can provide continuous income in the form of monthly rent. The rental component always makes real estate a very unique proposition for investing. A quality commercial property can provide returns of around 5-8%. Similarly, residential projects can give returns of around 2-3%. Therefore, this is the right time to capitalize on those possibilities.

Increased liquidity: This is a good time to invest in real estate because home loan is going to be cheaper. RBI has recently cut the repo rate by 75 basis points. The rate drop is a welcome move for the industry. In a short period of time, as a calibrated response to the reduction in repo rates, most banks will also reduce their home loan rates.

Feasible Hard Asset: The biggest advantage of real estate is that it is a tangible asset. At a time when there is too much risk investing in paper money, real estate is a safer and safer asset for betting.

Real estate is a separate asset class that can ensure appreciable ROI, hedge against income and provide recurring income in the form of rental yields. However, it has its drawbacks, as a real estate asset will take at least 2-3 months. Nevertheless, investment in real estate is always made keeping in mind the medium to long term perspective. A short-term perspective can be counter intuitive.

So in these times of social distinction, do not just shut yourself down. Use isolation downtime, do some in-depth research, learn about the various sources of passive income and make the most of this time to make meaningful investments.

STAY HOME, STAY SAFE, STAY ALIVE

SUGANTA REALTY SERVICES LLP

Why are 2 BHK apartments ideal for investment? 2 BHK - Best Real Estate Investment

The Indian residential real estate market has grown at a rapid pace over the past few years. With revised government policies, today every person can afford a household expenditure whether it is single or family. However, when it comes to acquiring a property, most buyers get confused about whether to invest in a 1 BHK apartment or a 2 BHK.

A 1 BHK is priced significantly higher than a 2 BHK, but if we evaluate market trends and other factors, a 2 BHK is more pocket-friendly and cost-effective. So, have a look at some of the benefits that a home buyer can enjoy while buying or investing in a 2 BHK flat:

Cost-effectiveness: If you go by market value, a 1 BHK apartment costs a lot less, but doing a little bit of market research will help you understand that buying a 2 BHK flat will be more cost effective than a 1 BHK.

For example, an A1 BHK apartment in Noida Expressway is somewhere between Rs 22 to 25 lakhs, while a 2 BHK cost starts at Rs 30 lakhs. So, just by applying some money, you can get more space, room space and a better unit for your family. The price chart is similar in cities like Hyderabad, Bangalore and Chennai.

However, if you take a little more out of your pocket and move to other cities like Gurgaon or Mumbai, you can get a luxury 2 BHK unit with unique features. Because of this, many potential property buyers wait and save enough money to save their money.

Market Availability: With the implementation of new policies such as affordable housing in the real estate market, a mid-segment working professional can think of buying a 2 BHK apartment at an affordable price. Apart from this, developers are also launching 2 BHK units as the demand is more than 1 BHK in the market

Spacious: A 2 BHK is roomier than a single BHK apartment. You have larger rooms and more outdoor space. Many times, many developers combine a child's room or a study room to give the 2 BHK unit a big boost. It becomes easy for you to adjust the furniture and plan the home decoration items accordingly.

Future plans: Most individuals want to buy a home when they settle down with their family or plan to have one. At this time, buying 2 BHK is always measured as a decent alternative as it is in the future. As your family grows, you need a bigger place to live. A solo BHK is good for a single person who has just started his professional career.

Returns and Profit: 2 BHK apartments are ideal investment options considered by medium-sized families or nuclear families. Philosophically, for a long-term objective, investing in a 2 BHK property is definitely the best thing you can do to get a better return on investment (ROI). 

2 BHK can be easily rented or sold due to its affordability. Therefore, with these benefits, it is always better to buy a 2 BHK apartment from SuGanta Realty Services llp.