Property in India – Look Ahead with an Appropriate Investment Solution

by Anurag Gupta Real Estate Consultant

Conventionally, real estate has conventionally been an opportunity for a significant investment opportunity for Individuals and financial institutions that are looking for the right investing money among stocks, property, bullion, and other avenues. Money spends on the property for the purpose of salary and capital growth gives predictable and stable returns of the income, just like any other bongs providing a regular return on investment. No matter, after buying the property, you share on the rent; there are high chances of capital boosting.

 

Similar to any other option of investment, the real estate investment also has specific risks associated with it, which is quite special as compared to any other investment. The accessible investment opportunities can generally be grouped into residential, retail sectors, and commercial office space.

 

Prospective of Investment in Real Estate

If you are interested in investing money in real estate, then you should first consider the risk attached to it. There is a high cost of entry and a lack of liquidity. By becoming illiquid, it is not right to sell some units of the property if there are some emergency approaches.

 

The period of maturity in the investment is not specific. It is important to check the property title particularly for investment in India. The industry professionals considered that property investment must be completed by individuals who have deeper pockets and investment for a long time. People who are interested in long-term financial returns are advised to invest in commercial properties having higher-grade.

 

For a long term investment, the returns from the market of the property are similar to that of specific equities and directory funds. An investor who is planning to balance the portfolio can look ahead with the real estate sector for a safe technique of investment with a specific amount of risk and volatility.

 

An appropriate tenant, location, different segment properties in India as well as individual risk will work as the Indian property market and individual risk choice will work as main indicators in achieving the objective yields from savings.

 

The reason behind the Success of Real Estate Investment

The introduction of Real Estate Mutual Funds (REMF) and Real Estate Investment Trust (REIT) will improve the investment in real estate from the point of view of small investors. It lets the small investors use their hands just by investing INR 10,000.

 

Moreover, there is a huge demand and requirement from various market players of the property area to quickly relax specific conditions for FDI in the area.

 

The foreign investments make sure for quality infrastructure and would modify the whole market conditions when it comes to professionalism and competition of the market players. Well, there is nothing wrong to say that the real estate market is expected to give a wonderful investment choice as compared to bonds and stocks in the last few years. The best thing about the real estate investment would be to promote favorable inflation and low command of the interest rate.

 

Profile of the Investor's

In the list of the active investor, areas are Financial Institutions and High Net worth Individuals (HNIs). No doubt, they show up more preference to the commercial investment, they pay more attention to the commercial and residential properties.

 

The third category of the investor is known as Non-Resident Indians (NRIs). They give preference to spend money on residential properties as compared to the commercial one, due to the emotional attachment as well as security connected. The documentation and formalities linked with the immovable properties other than agricultural and plantation properties are highly easy and the rental profits are liberally repatriable beyond India. NRIs have enlarged their responsibility as investors in real estate.

 

The idea of Real Estate Investment Trust (REIT) is on the edge in India. However, similar to any other financial instruments, problems are faced with the acceptance of the new idea.

 

The prime role of the investor is helpful in the condition where the importance of the seller and the purchaser don’t just match up. Take an example, if the seller is fanatical to sell the possessions and the acknowledged occupier plans to lease the property, in the middle of them, the deal will never be fructified; though, an investor can have spirit yields by purchasing the property and make it available on lease.

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Created on Nov 28th 2020 07:54. Viewed 289 times.

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