covid-19 real estate investment

Here’s why coronavirus lockdown must not stop you from investing in real estate

The world economy has been facing tremendous issues quite instinctively. Even in the pandemic,  the Indian real estate sector has found ways to function with every one bound at home. Even if the nation is under natural or humanly caused crisis or there is a newly introduced reform like demonetization, RERA, GST, and IBC, the city of Mumbai is always first to be affected. 

In such scenarios, builders and developers in Dombivli and Mumbai like Runwal Gardens who have residential projects in Dombivali have only one aim – How to overcome the pandemic by accepting technological innovation along with their staff and give it out to the customers by working progressively and with strict safety precautions. 

The real estate sector like any other sector is facing drawbacks of the Coronavirus lockdown, which leads to new project launches being staggered by the developers. 

Certainly, the lockdown has made people realize that they require bigger homes and what is the value of a home. It has made them question what if they had a balcony? Extra room to do yoga? Have a proper study at home for work? Due to which the available ready-to-move-in inventory continues to see interest even during the ongoing lockdown period. A few benefits as to why coronavirus lockdown must not stop you from investing in real estate could be, 

Reduced Home Loan Rates

Investing in real estate during lockdown can be lucrative as national government and central banks have proposed a low repo rate of 4.4% and the reverse repo rate at 4%, the Cash Reserve Ratio has been reduced to 1%, and Reserve Bank has allowed a temporary suspension of 3 months to all term loans. Combining home loan rates and repo rates by the RBI, buyers gain a massive save on interest.

Limited Period Offers

Investing in real estate during lockdown has come bearing offers and schemes like refundable booking amount, no stamp duty and registration. There are drop-in inquiries and a decline in property buyers. But the company’s sales process is not massively hampered as they have moved the entire functioning process online – from inquiry to booking. The real estate sector has exclusively availed, upgraded, and modified the buying offers in the market.

Real Estate Over Other Investments

While stocks and gold are a well-known investment option, real estate has its altogether different perks. Under the right circumstances, real estate offers an alternative that can be less risky, yields better returns, and offers greater diversification. As investors benefit when the property value goes up which turns real estate to a more stable investment than others. 

Reputed Developer

Investing in real estate during lockdown offers an opportunity to own a house with a reliable and trustworthy company. There are good deals available in the market and the scope for negotiations is high with future evaluation and fulfillment of the project. Having said that, prospective buyers need to be cautious and not rush into finalizing deals even if the deal is attractive and rather opt for reputed developers who have delivered projects in the past. 

Cash Flow and Rental Income

Investing in real estate gives you the ability to gain leverage on your capital and take advantage of substantial tax benefits. The long-term cash flow provides a passive income through rents, profits generated by property-dependent business activity, and the promise of appreciation. Investing in real estate can keep the cash flow running and be profitable at the time of selling. 

Tangible Asset

Real estate is appealing for many prospective investors for the reason that it is a tangible asset that can be controlled with the added benefit of diversification. Real estate investors who buy property avail themselves with binding reliability and profitable ROI. Besides other investments, real estate is one collateral yet tangible asset to be confident about. 

Inflation Hedging

Real estate generates monthly rental income which increases in inflation and leads to additional advantages. The inflation hedging capability of real estate derives from the positive relationship between GDP growth and the demand for real estate. Investing in real estate during lockdown with an inflation hedge assures an increased and maintained value as economies may expand and the demand for rents rise higher.  

Despite all the benefits of investing in real estate, there are certain drawbacks to be considered. Yet, the real estate sector stands as a distinct asset choice for investors. The current real estate sector offers low-interest rates on home loans, no stamp duty registration, the benefit of buying from a reputed developer, required cash flow, an asset, and a hedge against inflation. 

Leave a Reply

Your email address will not be published. Required fields are marked *

Rera Information

The project has been registered via maharera registration number as Runwal Gardens Phase 1 : P51700022699, Runwal Gardens Phase 2 Bldg No 13-17 : P51700025677, Runwal Gardens Phase 2 Bldg No 18-23 : P51700024154, Runwal Gardens Phase 3 Bldg no 24­-26 : P51700026228 and is available on the website https://maharera.mahaonline.gov.in under registered projects.

Disclaimer:

The information and material contained herein are not intended to substitute the information available on the website of MahaRERA. Any person who is considering/evaluating any apartment in any of the registered real estate projects, are required to independently analyze, acquaint and familiarize themselves with the information and disclosures uploaded on the website of MahaRERA. In the event of any conflict (whether actual or perceived) between the information and material contained herein and the details available on the website of MahaRERA, the details as available on the website of MahaRERA shall prevail. Further, Runwal Gardens is a brand name for the larger project and the information given herein pertains to the larger project. We will be registering separate real estate projects, from time to time. The Photographs. images, videos, plans, drawings. sketches, renderings, pictorial and graphical representations, specifications, illustrations, Other information etc. contained herein are typical Stock/Standard photography used by the industry at large and/or pure imagination and are intended to indicate a conceptual and aspirational lifestyle. None of the aforementioned is indicative of how the larger or any part thereof looks at present and/or may eventually look in future and\or may be designed. constructed and/or completed.