Is it now the best time to invest in real estate? Conventional wisdom will shove you away from even thinking about taking such a risk. These are not normal times. The whole country is tightly squeezed in a lockdown scenario, with a pandemic spreading its tentacles slow and steady.
This is not the time to mince words, with every fact rolling up on news channels and mushrooming across the internet. Yes, the situation is critical, which is evident in lockdowns getting a grace.
Here’s the question. Are you just going to slouch on your couch, savour your dalgona coffee, watch Netflix and wait for the lockdown to end? Or, man up and have a crack at this opportune situation to strike gold.
Fellas, you don’t need a kaleidoscope to visualise that real estate is the best bet even in these adverse times. For a smart investor, buying real estate during lockdown is the most intelligent move. Property prices are at their lowest across most cities over the last three quarters. With stable prices, a raft of offers by various A-listed developers and reduction in repo rates by RBI, it can’t be hotter an opportunity than this. So, strike it…and strike it hard while it’s hot. And you will reap the potential benefits of this investment in the years to come.
You must be thinking it’s much safer to invest in stocks or SIPs or for the record, mutual funds. Well, the ongoing pandemic has crippled stock markets and eroded overall investor wealth. Faith in stocks, gold and mutual funds have been on the decline. Given the most volatile nature of these assets, real estate has emerged to be the safest bet, if they remain invested for the long term.
Need more convincing? Read on.
- Security for the future: The pandemic has rightly taught us a lesson that uncertainties come like a bolt from the blue. And that a passive income is needed to generate wealth. The free-fall of stocks and gold prices further reinforces the fact that real estate is a stable asset. With property price corrections happening in several micro-markets and developers dishing out attractive deals during the lockdown, it is the best time to invest in a property, taking into account the rental income and price appreciation benefits you will enjoy in the long term.
- Traditional assets losing credibility: For times immemorial, gold had been a valuable asset for Indian families owing to its high degree of flexibility. Gold can be bought for even a few grams and it is easy to sell and get the investment back. However, recent price depreciation has stolen the sheen away from the yellow metal. What was viewed as a safe and stable investment even during tough times is now considered a dead asset. For serious investors, real estate is now the most viable option as it is safe even from economic meltdowns.
- Reduction in Repo Rates: The recent reduction in repo rates by 75% has slashed home loan rates by 0.75%. With cheaper home loan rates, the scales have tipped in favour of home buyers. So, if you are waiting for better home loan rates to invest in your home, nothing can get better than this.
- Providing regular income: Unlike gold and stocks, real estate is a tangible asset and is not that sensitive to economic fluctuations. Investors prefer real estate because it gives them regular income in the form of rent, safety and security and robust appreciation value. The revenue generated from a real estate property in the form of rent is perennial and perks up with the rate of inflation. Stocks, on the other hand, are extremely volatile assets and come with grave risks of wiping out lakhs or crores in a matter of hours.
So, if you are gunning for maximum returns in the future, the time is now to invest…and invest in real estate. With virtual reality and 3D tech, home seekers can enjoy an immersive tour of properties from the convenience of their couch; and with digital transactions and signatures, the purchase cycle is smoother than ever. Remember, an investment in real estate and the inherent benefits it brings is hard to beat by conventional assets. And it will continue to be your lucky charm forever.
