♠ Posted by Unknown in land developers,property sellers at 10:42 AM
The market condition of the real estate of India may seem sluggish but the experts insist that this is the right time to invest in the Indian realty markets. The international real estate scene is also volatile. Indian markets show a scenario which has a positive outlook with many schemes and propositions in the next decade in the domain of real estate. According to the real estate cycle also the realtors insist that this is perhaps the time to invest as the peak time for the prices in the realty market will probably come in the mid-twenties. This will make the buyer reap good capital profits and also encash the recurring benefit of renting the land or the property. The experts insist that if the land or the property is located at a good and lucrative place and the due diligence is done, this is probably the best time to buy plots in Bangalore.
Why is this the best time to invest?
The reason the realtors insist on that this is the best time to invest is that the mid-twenties is the estimated time for the prices to go at its peak. This gives the owner to earn from the property as well. Apart from that the realtors today are worried on the unsold inventory that is surmounting and this is increasing their pressure of debts. This also is slowing down the cash flow of the business and eroding the profitability too. To overcome this bottleneck the property sellers and developers are offering good and attractive discounts with the home loan offers and facilities given by the RBI it makes lot of sense to buy now. In short the trend watchers remark whether it is land or a property the Indian market conditions suggest that it is a buyer’s market.
Opportunity for rental income
As said earlier that the market conditions of the Indian real estate is such that the prices have not reached the peak and it is in the second phase of the real estate cycle the property purchased now can generate lot of rental income. The capital value of the property increases in the meantime or in the worst case scenario the prices may remain constant. But contrarily it is observed that the demand of the rental market is steadily on the rise.
Realty Assets offer much more stability
The share market offers return on investment but is highly volatile with the market conditions changing several times a day. Unlike the equity markets the real estate is quite steady. Even if the prices fall the time is longer through which it falls. This ensures a nominal loss if at all. This kind of security is not there in the share markets which can literally wipe off one’s life time’s saving in a single day and can even lead to insolvency.
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