Why Real Estate is an Ideal Investment? | | Pacifica Companies

Why Real Estate is an Ideal Investment?


Are you looking for a beautiful nest for you and your family? Yet Do you want to invest in something that holds value and has an amazing return on investment? Then Real Estate should be your choice. Historically, Real estate has always been and will continue to have high ROI. While other investment options have its highs and lows, Real Estate will always be a stable and high ROI investment opportunity. And then Again you always have a new home to move into to build that nest you have been thinking about for a while.

Here are a few reasons why Real estate will always be a favorite option to park your money.

STABILITY AND GROWTH:

There are a number of investment options like the share market, mutual funds, ELSS schemes etc. available in the market but they are subject to market risk i.e. On a good day you may see great return but on a bad you may loose your principle amount. However Real estate is one such investment option, where on a good day your property might appreciate two fold while on a bad day, it will just remain stable. Thereby protecting you initial investment amount.

A TANGIBLE ASSET WITH HIGH VALUE:

A home may be an immovable property but it not only counts as an appreciating asset as against a car which is depreciating, but also plays a huge role in understanding the net worth of an individual. Moreover, it can also be put on rent and can be made an income generating asset. One can also invest in land and hold it for a longer duration till they get the right price for it.

FLUCTUATING INTEREST RATES:

Interest rate for mortgage loan may go through several ups and down cycles. Therefore, you can be sure that you benefit from falling interest rates as some point of time. To encourage more and more people to buy their own home, the government of India provides subsidies, gives tax deduction on interest paid on home loan.

TIER-TWO CITIES ON A FAST PACED GROWTH:

Due to high price homes in first-tier city, home buyers consider second-tier cities in search of better homes, lifestyle and value. This trend is likely to continue and increase over time. The influx of capital to second-tier markets tends to ensure that better infrastructure and residential options are built thereby leading to price appreciation.

MORE AND MORE MILLENITALS INTERESTED IN BUYING HOMES:

Millennials identify owning home as a goal because they are redefining life priorities by keeping home ownership on top of their list. With growing independency of millennial women as well as government provision which makes it easy to buy a home is a result this trend is increasing at a fast pace. Since many millennials are at prime home buying age they continue to push trends in the real estate industry. They represent demand which could convert to a million home purchases. According to sources the year 2020 will mark the peak of a millennial home purchase. It is expected that for the next decade there will be a larger market share represented by this generation.

A PLACE TO CALL HOME:

At the end Investing in real estate can also help you ensure that you have a place to call home. A Lot of millennials working in metros invest in tier 2 cities and put these homes on rent. The idea is to have an income generating asset for them. Also whenever they want they can always move to these cities and start living in their own homes.

GOVT. POLICIES AND RERA REGULATIONS:

Real estate is always seen as a more mature asset. Much has changed the real estate market over years owing to several new Govt. policies and regulations. Investing in this sector is now much more comfortable and a consumer is protected. Of late the real estate market saw RERA Act being passed which not only ensures that fraud and mis-leading communications are dealt with seriously but also has set down a standard procedure that every real estate developer has to follow. This has increased the consumer confidence index in buying a property.

With proper planning and knowledge take the first step to owning a real estate property. There a number of developers that are available in the market, hence it is important to research every detail carefully and understand which property best suits your need. You Can also approach experts who usually deal with these properties to guide you in the right path.

At Pacifica Companies, we not only work towards ensuring that you buy your dream home but also work as financial advisors where we let you know which investment option works best for you and your family.