April 13, 2018

This Akshaya Tritiya, it may make better sense to buy real estate, instead of other assets. Here are the reasons why

As Akshaya Tritiya is considered an auspicious time to invest in property, every year, prospective home buyers hope to finalise their purchase during this period and also look for lucrative offers to sweeten the deal.

Over the past two to three years, property prices in most places have not increased and in certain cases, they have even gone down. Consequently, home buyers today, can get houses for a lesser amount, as compared to those who purchased around four years back, by around 30%-40%, adjusting for the interest paid on the investment. Moreover, the property market is now relatively stable, with a favourable risk-reward ratio.

According to Sandeep Ahuja, CEO of Richa Realtors, “This Akshaya Tritiya is special for many reasons:

• The market is at its lowest point and to top that, developers are willing to offer special schemes to their customers.
• With the new Real Estate Act, buyers can now buy their dream house, without worrying about delays in delivery and quality issues in the end product.”

A Matter of Timing

Investing in real estate now makes sense, as property prices always escalate over a period of time, asserts Atul Goel, managing director of the Goel Ganga Group. “Nowadays, buying a piece of land is also considered as a festive investment. Those thinking of buying flats, shops or any other property, especially the first-time buyers, wait for a special day and Akshaya Tritiya, is one of it. I would say, investment in shares, etc., is a perennial process and a comparatively less preferred choice than buying property,” Goel maintains.

5 reasons to buy a home during Akshaya Tritiya, over other asset classes

Experts point out several reasons to justify why it makes sense to opt for real estate over other asset classes:

• Property prices are at their lowest point. Moreover, the market is less volatile now and prices are bound to increase gradually but steadily.
• It is easy to mortgage property and generate liquidity immediately, in times of need.
• Real estate can generate steady income, in the form of rent.
• Investing in property also has several income tax benefits.
• Gold, shares and other similar investment assets, are actually more volatile in terms of their market prices in comparison to realty.

Cities that are attractive for property investment during this Akshaya Tritiya

Buyers should explore options, based on the size of their investment, expected returns and risk capacity. Big cities and metropolitan regions, require large investment and the returns are relatively lower, in comparison to emerging cities, where the investment corpus required is low, and the returns are relatively higher.

The most attractive cities for investment in property during this period, are Mumbai’s peripheral areas, Pune, NCR, Vadodara, Jaipur and all the emerging locations where large projects, such as the Delhi-Mumbai Industrial Corridor (DMIC), are making a big impact. These cities are also attractive because of the faster uptake of commercial real estate in these markets. This gives clear signs for firming up of demand for residential real estate, which typically lags the commercial segment by around one to two years.

Share This:

Read all Thane Real Estate Latest News

 

To Know About Best Residential Projects In Thane Contact Us at 022 2580 6868

Source: housing.com