Due to COVID19 Yes, there is panic everywhere and yes, the situation is critical, But do you want to end up this lock downtime to just anticipate the outcomes and listening all the time about this corona outbreak or do you want to crack this opportunity to dig the gold? This pandemic has rightly taught us that uncertainties come unexpectedly. So, are we prepared to face any such situation again?
If the answer is No, I suggest that utilize this time to invest in sources of passive income. Yes, this is the best time to understand various possible investment options available where you can start your passive income and secure your future and safeguard your family. So, we at Agrawal Construction Company suggest people to take Advantage of this COVID19 LOCKDOWN opportunity.
Although there are options like SIP, Mutual Funds, Shares, etc. then why Real Estate? WHY REAL ESTATE DURING LOCKDOWN? Probably most of the people interested in buying real estate would be holding their decision till the lockdown opens due to speculations in the market or risk about economic conditions. Yet for any clever investor who is observing the current market will testify buying of real estate during lockdown to be the smartest move. Here is why -
Real Estate has proved to be the most reliable investment option so far considering the conditions of banks, share market crash and no capital appreciation on any other option that may look safe initially
Competitive Risk: Adjustment Returns: Based on July 2018 data from the National Council of Real Estate Investment Fiduciaries (NCREIF), private market commercial real estate returned an average of 9.85% over the past five years. This credible performance was achieved, together with low volatility relative to equities and bonds, for highly competitive risk-adjustment returns.
High Tangible Asset Value: Real estate is not paper money; this is the asset you can hold tangibly which again increases its reliability and return on investment.
Attractive and Stable Income Return: The rental yield from real estate is much higher than returns on any traditional sources of investment. Commercial investment can yield up to 12% ROI and lowest to 5% ROI (with capital appreciation) depending upon the construction stage and lease terms of the property.
Inflation Hedging: The inflation hedging capability of real estate stems from the positive relationship between GDP growth and demand for real estate. As economies expand, the demand for real estate drives rents higher and this, in turn, translates into higher capital values.
Deficit Demand: Real estate is facing deficit demand in the market which leads to the generation of various attractive offers by Developers. To maintain the good books, builders are currently offering very low rates, lucrative payment plans and additional offers resulting in lowering the cost of the property. End-user can expect to buy a property as low as the launch price during this lockdown.
Reduction in Repo Rate: RBI announcement for reducing the Repo rate by .75% and the new base rate is 4.4%. This will reduce the loan interest rates by at least 0.75%. This turns the sentiments of home seekers – positive. So indeed, this is a good time to buy your home if the decision was just hiding behind the corner for some better rates or good units.
Passive Income: Various small investment options are being introduced in the market starting as low as 5 lacs in real estate that too with a rental income. This is again an opportunity to create a separate asset class in your portfolio and start a source of passive income.
Demand- Supply breakthrough: Due to low demand, discounted rates on good inventories are available. But once the economic condition will start settling, the bargain will reduce and demand will also start floating upwards. The rates will not be as low as they are now during the lockdown.
Strike the iron when it is hot: We all must have heard this at least once. But it’s time to implement the strategy to gain extensive returns on the investment. Not only the rate is striking low, but the return on investment is also being offered by some builders as high as 18%. So, we at Agrawal construction company are giving various offers during lockdown such as huge discount on Flats In Hoshangabad Road, Flats in Kolar Road, Plots in Bhopal and Shops in Bhopal so its high time to invest in properties.
Brand Integrity: Though it’s a shooting star opportunity to buy real estate now, yet always go for a grade one category developer. During the lockdown, you have additional time to do your diligence about the projects, builder background and future prosperity of the investment. Use this time to choose the best proposition for yourself, take expert advice and then book your dream asset. Such as Flats in Bhopal, Duplex in Bhopal, Shops in Prime Location of E8 Arera Colony Bhopal Etc.