Go Big This Dhanteras By Investing in Real Estate

Goddess Lakshmi emerged from an ocean of milk when the seas churned on the day that is known as Dhanatrayodashi, or more commonly Dhanteras. Celebrated on the 13th lunar day of Krishna Paksha (dark fortnight) in the month of Ashwin according to the Hindu calendar, the highlight of the festival is Laxmi Puja. The auspicious day that marks the arrival of Diwali is famous for investing in gold and silver jewelry, and even other metals to bring prosperity in the lives of the people that make up the Hindu society. 

Every Indian festival holds a spiritual essence and a practical idea. One of the oldest civilizations follows the traditions of investment till date and since all kinds of investments are welcomed, why not real estate and PE funds? With the incumbent government’s active efforts towards infrastructural development that is evident in the RERA Act, demonetization, and the annual budgets, the idea of real estate investment on Dhanteras holds water. 

Banks and builders alike introduce offers that match the tradition of buying gold. Historically, RBI has offered concessions like cutting the cash reserve ratio (CRR) in 2012 and cuts in the repo (the rate at which it lent money to other banks) in 2015. Consequently, the lending rates go down, which makes it easier for the public to avail loans.

Similarly, finance companies slash the interest rates during the festival season to boost sales. Moreover, they offer up to 90% of the entire amount as loan. This leads to savings up to 5-10% savings on property purchases, which cannot be overlooked.

Construction companies offer attractive discounts and even wavers on charges. These deals and offers include gold coins, travel packages for the family and sometimes even cars in some cases. Moreover, assured gifts and prizes are quite common.

After the surge in the prices of gold in 2010-2011 and 2011-2012, the rates have comparatively fluctuated within a very small bracket. The fear that demonetization will dull the real estate sector hung over the horizon for a while but dissipated soon. The first quarter of 2017 saw a 19% increase in demand as compared to the 20 % fall in the last quarter of 2016.

We come back to where we started – investment as a source of prosperity. As it turns out, a shelter is the biggest investment we can make. If the public invests in property on an important festival such as Dhanteras, not only does it mean that it reaps materialistic benefits but contributes the much-needed part in the development of the country as well.

Consider your budget, long time aspirations, the purpose of the investment, and the builders to make this Dhanteras as auspicious as the events that made them so important for us as a community!  

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