India’s Most Secure Investment : Landlords, according to John Stuart Mill, “get rich while sleeping.” Even after two centuries, it appears to be true! Despite short-term hurdles posed by the Coronavirus epidemic and the availability of alternative investment options, India’s real estate sector remains one of the most popular long-term investment vehicles.

Are you searhing 2 bhk flat for rent in kharghar?

The Coronavirus outbreak was one of the most difficult difficulties the human race has encountered in a long time. The real estate business, like every other sector of the economy, has encountered challenges such as historically low housing demand, few site visits, stalled building operations, and a lack of trust among homebuyers. The real estate industry, on the other hand, is surging and exhibiting signs of recovery after two pandemics.

The realty industry has sparked prospects of recovery for other ancillary industries, thanks to reasons such as the Reserve Bank of India’s (RBI) stable repo rate, corrected property prices, and In the aftermath of the epidemic, there is a higher desire for personal areas.

The Indian real estate market is expected to be valued USD 200 billion in 2021 and USD 1 trillion by 2030, according to the Ministry of Housing and Urban Affairs (MoHUA). Furthermore, behind agriculture, the real estate sector employs the second-largest number of people in India and contributes 7-8 percent to the country’s GDP growth.

Why is real estate still the safest investment?

Real estate has always been a safe and secure investment option with little risk, and it has always been the first choice for investors with a low risk appetite when it comes to asset accumulation. In light of market volatility and turmoil created by covid, real estate remains a viable alternative to equities shares. However, there was an influence for a year or two after 2020, but it progressively increased and is now approaching pre-covid levels. With several MNCs and industrial enterprises establishing bases in India, the sky is the limit for both residential and commercial investors.

Furthermore, the rate of return is stable, and the most crucial element is the tax exemption it offers in the case of a mortgage.

Let’s take a closer look at the many variables that contribute to real estate being a safe investment in India.

 India’s Most Secure Investment : A buyer’s market exists.

Despite the fact that the COVID-19 epidemic struck as a surprise. It resulted in a drop in housing prices, allowing potential homeowners to make an educated selection. In the previous year, increased demand for ready-to-move-in housing units has been seen throughout metros due to long-term work-from-home arrangements and online education demands. Whether a first-time purchaser or an existing homeowner seeking for more room. Consumers prefer ready-to-move-in residences and are apprehensive of investing in properties that are still under construction.

Factors such as historically low house loan interest rates, stamp duty reductions by some states, such as Maharashtra, and enticing offers carried out by various developers on available apartments have all contributed to India’s rebounding housing market.

According to the Reserve Bank of India’s (RBI) Financial Stability Report (FSR). Unsold residential property levels have decreased to around 7 lakh units in March 2021. Compared to 8.50 lakh units in the first quarter of 2020, indicating a further improvement in house sales. Anarock’s real estate research study confirms this, stating that sales momentum in the top seven metros has surged by 93 percent yearly.

Buy Now

India’s Most Secure Investment : Prospects for Long-Term Growth

The fact that the value of a structure depreciates while the value of a land parcel improves is one of the key reasons why investors are drawn to the real estate market. If investors have extra cash, they would rather buy land than invest in a low-yielding Fixed Deposit. In addition, increased real estate investment is stoking expectations of rapid price growth.

When looking at historical statistics. It can be shown that the real estate industry rose by 11.2 percent from fiscal year 2005 to fiscal year 2020.

Real estate, unlike other market-linked investment alternatives such as equities and mutual funds, has a low volatility quotient. Because gold is a tangible asset, it remains one of the safest investment options in India.

Income from a side job and collateral

For real estate investors, the possibility to earn passive rental income from a property investment is a key driver. Rental revenue, on the other hand, varies by city, location, demand, and property type. Rental yields on commercial properties are often greater than those on residential ones. And Rental revenue from student housing, business leases. And agricultural leases is plentiful in top metro cities such as Mumbai, Delhi, Bangalore, Hyderabad, and Kolkata.

Furthermore, in India, a property is more than just an economic choice; it has an emotional value associated to it. Aside from the potential for development and passive income. One may always pledge a property as collateral with a bank and obtain a loan against it. Such as a company loan, an education loan, and so on.

India’s Most Secure Investment : Low interest rates on house loans

In India, home loan interest rates have reached a 15-year low. The majority of banks and Housing Finance Companies (HFCs) provide mortgages with annual interest rates of less than 7%. The effective rate of interest for qualified consumers is less than 5% per year due to potential tax savings on home loan repayment.

Furthermore, if a person takes out an overdraft or a house loan top-up. He receives an extra credit line at the same or 1% higher than the home loan rate. xAs a consequence. The applicant can benefit from enhanced liquidity and cheaper credit for urgent financial needs in addition to the property loan.

In India, a house loan is one of the most cheap bank loans. Long-term property investing is unquestionably a sensible use of lump sum money when inflation is at or above 6%. Surprisingly, a house loan of up to 75-85 percent of the property’s value is available.

With a house loan, you can save on taxes.

By repaying the principal and interest on a home loan, a buyer may be able to save money on taxes. A deduction can be claime by each applicant for a share home loan up to the appropriate amount. Under Section 80 C of the Income Tax (IT) Act, an applicant can claim a deduction of up to Rs 1.5 lakh on principal repayment and up to Rs 2 lakh under Section 24.

The tax savings are calculated base on the income tax slab rate. An extra deduction of Rs 50,000 can be claimed on interest repayments up to Rs 35 lakhs. Or less under Section 80EE for affordable housing units up to Rs 50 lakhs.

 India’s Most Secure Investment : RERA’s foresight

Home purchasers’ rights are properly safeguarded thanks to the introduction of the Real Estate (Regulation and Development Act RERA. The RERA has also increased investor trust in the real estate market. RERA requires builders to publish project specifics in a public notice, and if the developer does not have an RERA registration number. The project is considere illegitimate.

Builders must report on project progress and delays on a regular basis. As a result, the RERA has improved real estate industry accountability and openness.

To summarise, real estate is a sound investment.

Finally, there is no such thing as a “one-size-fits-all” investing opportunity. Before making a selection, the investor must assess his or her investment horizon and risk appetite. Make the calculations and get professional guidance. Property portals such as navimumbaihouses.com may also be used to keep track of pricing and make an educated investing decision.

You’re looking for 3BHK Rental Home In Kharghar we have the Best Rental Properties In Kharghar Like Ready to Move & Nearby possession: https://navimumbaihouses.com/property/search/rent/kharghar/3BHK/

If you want daily property update details please follow us on Facebook Page / YouTube Channel / Twitter