Why Real Estate is Still an Effective Investment Option?

The millennials and the Gen-Z are more conscious of their investments more than ever before. Especially, people in their mid and late 20s are carefully crafting their portfolio. 

There are multiple investments options available in this digital age. The stock market, mutual funds, SIP, Recurring deposits, fixed deposits, gold, government bonds, etc…. 

The list is long and everything comes with its own pros and cons. All of these investment opportunities presented a new line of debate. Real estate has been a sought after investment option for decades. Especially, in India, a lot of communities still believe that giving land as a gift for a married couple is viable. 

Now, let us see why real estate is still an effective investment option in 2021. 

1. The rental income from real estate is amazing

Even though the pandemic has disturbed the waters for real estate and created a ripple effect, this is just a bump. Once things settle down, people will return back to their respective cities and the demand for rental homes would grow up obviously. 

Once it happens, the rental income would flow in just like the way it was before. There have been hundreds and thousands of people who have created multiple businesses with rental income as their primary source.

Especially, in a commercial space, the revenue will keep on coming for the long term. Yes, the initial investment to buy a commercial space in a vibrant neighbourhood, near an arterial road, can all be tough. But, once you get it right and ready, then the property will repay the loans all by itself. 

2. Real estate investments offer stability

Unlike stock markets, where multiple forces cause volatility, real estate is relatively stable. Yes, just like any other investment, there will be ups and downs in the market but it doesn’t make your money disappear like in other cases. 

It can just sit there right in front of your eyes, waiting till the market gets up back again and you can sell it when you feel the price is right. 

3. Real estate investments are a tried and tested path

Real estate has been the reason for 99% of the wars in history. Even though they were not looking to sell it, the pleasure of owning a piece of land has always been there. 

As the world kept rolling, investing in real estate became really popular. Ever since farming started and the economy came into existence, the interest in real estate investments has always been there. 

Since we have a huge volume of data to look at and observe the trend, real estate has always been appreciating in terms of value. 

4. The interest rate on real estate loans is very low

Surprisingly, yes. Interest rates on real estate are comparatively lower than educational loans in some cases. After the pandemic hit in 2020, banks have reduced interest rates on home loans and property loans considerably. 

This has been a huge attraction for people looking for affordable housing these days, and it is high time that you invest in it! 

5. It is relatively easy to invest in real estate without prior knowledge

Since knowledge about real estate is very common it is not hard to invest in real estate. Now we have tons and tons of blogs that talk about real estate and the potential areas where you can invest in, but it wasn’t like this a decade ago. 

People usually enquire in the vicinity and neighbourhood before deciding whether to invest in the property or not. Small shop owners, street card vendors, delivery guys, all act as real estate agents in most cases. 

6. Mortgaging is easy with properties 

Yes, mortgaging a property you own is a smooth process and it comes in handy in emergency situations. Though there are processing fees and other charges involved, it still pays off. 

Apart from a mortgage, you can also top up on an existing property loan if needed. This helps out people who have taken out loans to purchase the property but still requires urgent cash flow. 

All this said and done, buying a perfect property can be tough for buyers. There are multiple options out there. Even though the competition is good, too many options can throw the customers off and create a problem of plenty. If you need advice you will have to shell out a huge sum as commission and still, you may end up with properties that don’t appreciate in value. 

NautOne realised this gap in the real estate market and jumped in to help the consumers. We act as a channel partner for some of the top realtors out there and we advise you on the best available properties. 

Here is a surprise for you! 

We don’t charge a single penny for all the expertise and services that we provide from our end. You just pay for the property and have a beautiful investment or a home to live in! 

You can buy or sell properties with us by calling us on +91 8072696474 or by mailing us at hello@nautone.com.

Oh! We have published a beautiful article on the Top 4 Real Estate Hotspots in Chennai and the Impact of Metro Rail. Take a stroll through this article to know more about the opportunities that Chennai presents for real estate investors. 

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