For the average salaried employee, the task of having to save through investments can be daunting. Making the right investments is not easy for everyone, and for most, it seems safer and more convenient to stash money away in a savings account, or at the most, create a fixed or recurring deposit. Even though there are a variety of ways and means to grow wealth in the short or long term, there are still many Millennials who feel that it’s safer to stick to the basics because investing in the markets can be risky. The truth of the matter, however, is that the real estate market has been really stable since 2016. For those who are looking to make long term investments, now couldn’t be a better time to buy a luxury villa in Goa, for example. Here are a few more reasons why.
Low prices of real estate
Prior to 2016, the real estate market was in turmoil. Many real-estate companies found it difficult to move their inventory, and so have started selling at extremely low prices to get the market moving. These price points have for the most remained the same over the last three years. Even if you were to consider inflation on an annual basis, the cost of real estate, even beach property for sale in Goa, today is adequately at limited levels. At just price alone, anyone can see that picking real estate as a long term investment is a good choice.
Steady market growth rate
The downfall of the market in 2016 was a trying period, but that means the worst is over. Over the last three years, the real estate market has not only stabilised but is now growing at a steady pace. It may not be skyrocketing, but at the rate it’s going, it’s enough to inspire confidence in the fact that greater increases in the future can be expected.
Like we mentioned earlier, during the earlier market crash, many real estate companies found it difficult to move inventory. This means that there are many developers who still have a variety of real estate opportunities available. This can be seen as a great advantage for anyone looking to invest because it gives them great bargaining power. Since the prices are already low and there is more supply than demand, this gives the buyer the upper-hand.
Low bank rates
According to the Financial Express, home loan interest rates are at an all-time low. Due to the interest subvention of 30 percent, anyone looking to invest in real estate can now obtain home loans of tenures ranging from 15 to 20 years at interest rates that are as low as 6 percent. This makes for a very lucrative investment opportunity.
Increase in rentals of real estate
This is a very interesting point, but definitely, one to consider. As we mentioned earlier, many Millenials are reluctant to invest in real estate. This means that they would rather rent than buy a villa or an apartment of their own. For homeowners, this is an excellent opportunity to earn extra income. With the demand for rental properties increasing, those who are willing to invest in real estate right now will be able to supplement their incomes by renting out their apartments or studios to those who are looking to rent.
Changes in Government policy
With the introduction of RERA which is the Real Estate (Regulation and Development) Act, 2016, the Parliament of India seeks to protect home-buyers as well as help boost investments in the real estate industry. This has really helped boost the real estate sector. Thanks to the RERA Act, there is more transparency and punctuality in the market, which has inadvertently boosted the entire sector.
So, are you ready to make an investment in the real estate market? What are your thoughts on these justifications for why investing now is a good idea? Let us know in the comments below. If you are looking to buy a villa in Goa or looking for beach houses for sale in Goa, check out some of our properties.