MahaRERA No. P51800002564 available at website: http://maharera.mahaonline.gov.in

Enquire Now

Why Invest in Real Estate During The Lockdown?

Why Invest in Real Estate During The Lockdown?

Life is truly uncertain. There are times when you cannot do past your capacity, and the nation is going through a similar threat. Coronavirus is a global threat and most countries are under lockdown. Most of us have never witnessed a lockdown situation before, and its surely a testing time for humanity.

There is a panic situation amidst the news of the virus spreading rapidly. You can’t even ignore the news and updates that you get through your mobile notifications. This is a critical time but shall pass soon.

This deadly pandemic has taught us that we need to prepare for the uncertainties and unexpected turns of life. But you must look at the positive side as well. If you had a busy schedule before the lockdown and had no time to plan for the future, then this is the golden opportunity to do so.

It is the right time to make some personal investments to secure your future. Investing in mutual funds will give you good results, but it can also be risky. Investment in bonds and FD’S takes a longer time for return as well.

So, investing in real estate seems to be the perfect solution. This is the right time to invest in sources of passive income. By investing in real estate options, you can secure your passive income and safeguard the safety of your family in the future.

Real estate investment is the most reliable option right now as share markets are crashing globally. Banks are closing down due to scams. There is no other capital appreciation or option left to invest in.

If you are looking to invest in residential projects in Chandivali, then Shaporji Pallonji Vicinia is the best option for you. There are many reasons why you should invest in property during lockdown here are some of them.

Reasons To Invest in Real Estate During The Lockdown

1. Competitive Risks or Adjustment Returns

Based on the data of July 2018 from the National Council of Real Estate Investment Fiduciaries (NCREIF), the private market commercial real estate gave good returns. The estimated return was 9.85% over the last five years.

If you compare it with other investment options, then the return is much higher. This likely performance was achieved by low volatility relative to equities and bonds for the highly competitive risk-adjusted returns.

Real estate market rates are never constant, but the returns on investment are always good. Most real estate investments provide a good appreciation on investment. By investing in Shaporji Pallonji Vicinia, you can get good appreciation as well.

2. High Tangible Asset Value

There is a difference in paper money and asset value you hold. Real estate is not paper money, it’s the asset that you can hold tangibly. This increases reliability and returns on investment.

Take the case of demonetization, where so many people were affected. If you have an asset or an investment to your credit, then you are more secured. The tangible value of the asset will help you sail through difficult times as well.

3. Stable Income

You can expect a stable income from real estate investment. Rental income yield from real estate is much higher than any other traditional return on investment. Most commercial investments can yield up to 12%, depending on the construction stage and lease terms of the property. Thereby, offering a good rental income every month.

4. Inflation Hedging

The inflation hedging capability also stems from the relationship between demand for real estate and the GDP growth. As the economy expands or there is soaring growth, the demand for real estate also goes higher. With this, you can also expect higher capital values.

5. Demand and Supply Connection

When the demand is low, it does affects the good quality real estate projects. When the demand rises, the bargaining power of the customer reduces. This will happen once the economy stabilizes post lockdown. So, this is an optimal time to invest in a property.

6. Great Opportunity

Buying a house from a reputed real estate developer is important as they can offer an ROI of up to 18%. So, this is the perfect time to cash in the opportunity. Most builders are offering the best prices on real estate investments including Shaporji Pallonji Vicinia. Thus, making it the best time to invest with guaranteed returns.

7. The Right Time

You must have heard that its best to strike the iron when it is hot. Not only the rates are low at this time, but also most builders are offering great returns on investment of up to 18%.

8. Brand Integrity

You can explore the best options available for the projects and take expert advice about future investments. Here are a few tips to find the right property developer while buying a house. It is time to close the deal and feel good. But always look for a grade one developer for investment in real estate.

During the lockdown, you have the time to research on real estate developers and their projects. You also need to check the builder’s background and prospects for the investments. Use this valuable time to wisely choose the best project and book your dream home. You can also take expert advice on real estate investment online.

9. Reduction in REPO Rate and Deficient Demand

The loan interests are reduced and this will fuel positive sentiments with great prospects for profitable rates. All the end users can purchase the property as low as the end price.

 10. Lack of Liquidity

Real estate takes 2 to three months to liquidate if you compare it with other financial assets. Real estate investment offers competitive risk adjustment returns with fewer principle conflicts and attractive income streams. Illiquidity can also be a concern for some investors. However, there are ways to gain exposure to real estate yet reduce illiquidity.

To sum up;

You have the time to evaluate and decide on the best options to invest in. Though lockdown has halted life all of sudden, this is an opportunity that you can use. Invest in real estate to secure your future and safeguard your returns.

Reference

https://pacificoakcapital.com/learning/why-real-estate

No Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Request Digital Brochure

Request Digital Brochure

Receive a digital copy of our brochure and learn more about our spacious residences.