Capitalizing On Lucrative Real Estate Investment

The last couple of years (2016-18) has witnessed significant realty changes. A sense of uncertainty and anticipation has taken over the Indian Real Estate with the transformation that began with demonetization followed by Real Estate Regulation Act (RERA) and further echoed with Insolvency Bankruptcy Code, Benami Act and Goods & Services Tax (GST). Taking cognizance to these changes, potential property buyers certainly have a lot to come to terms by holding off their property investment decisions. Indeed these policies inevitably produced short-term shocks and buyers took time to adjust, the recent months are just perspective view of tranquillity before the storm. Now that the transparency, financial discipline and customer safety mechanism in place, the industry is shifting to the new paradigm with reform-led policies. As we enter 2019, positives are making their presence felt. These reforms are reinforcing trust and able to enhance confidence index among property buyers as well as investors.

2019 is shaping up to be equally promising with the housing market appreciation and the increasing number of development. Lower interest rates also mean numerous mortgages are becoming affordable, likely to motivate a large number of local and foreign buyers. In this scenario, real estate offers a dual advantage viz. the scope for capital appreciation and rental income. Real estate is fast returning to its position as an ideal option to grow wealth as one can take advantage of historically low equated monthly instalments (EMIs) and create wealth through real estate. When it comes to making smart decisions in terms of investing in real estate, those who are able to spot the potential in the present day will be making the right choice.

As millennials are increasingly on the move, they are a force to be reckoned with in India. This generation now accounts for more than 70% of the total workforce and their voice is growing louder economically. The next demand cycle will happen when developers respond to what the next generation of homebuyers really wants. More people of a young age can enter in the real estate investment market which was earlier restricted only to mature adults. Affordability is not the only consideration for millennials, however. This generation is increasingly on the move, choosing to live alone and have their children later in life. Therefore, affordability along with convenience and efficiency plays a significant role in their homebuyers’ decisions.

In a nutshell, Real Estate investing is buying a property to own and manage and to rent out to generate an income. The demand and competition for housing is eternal – people will always need a home, a huge incentive for buying an investment property. One great thing about real estate is its hedge against inflation (when the value of goods increases and gets more expensive). As a real estate investor, you benefit from inflation. That means rent increases, home prices increase, and money in your pocket increases. When the value of a home increases, that means the house has appreciated and appreciation is a great bonus to real estate investing.