Real Estate: A Viable Investment for Future

June 22nd, 2017

Commercial Projects in Bangalore

When one examines their investment options carefully, they are inundated with an array of lucrative investment alternatives. These include real estate, mutual funds, fixed deposits, bonds and others. However, after a careful deliberation and research, real estate emerges as the most lucrative long-term investment channel. It is often considered as one of the best traditional forms of investments existing today.

Investment in real estate can be classified in two categories: Commercial and Residential. Commercial real estate properties are used as a means to generate a profit, either from capital gain or rental income. These properties are leased out to accommodate commercial businesses that range from shopping malls, gas stations, industrial parks, office spaces, hotels, restaurants and convenience stores. Residential real estate encapsulates both newly constructed houses and homes for resale that essentially serve the purpose of human inhabitation. These residential real estate properties can further be classified into condominiums, townhouses, duplexes, green homes, luxury homes and vacation homes.

The tangible aspect of real estate provides mental satisfaction to the investor. Movements in real estate values are less dynamic than in the stock market. The fact that 75% of the amount can largely be funded by the banks while investing in a real estate asset aids in the purchase of a property. Similar benefits cannot be reaped with other assets, as no other forms of investment provide substantial loan assistance by the banks. . Real estate assets are widely acclaimed as a hedge against inflation, as it is immune to the unstable purchasing power of a rupee. As there is barely an involvement of a ticker, the daily rational evaluation of the asset is non-existent. The value appreciation offered by real estate properties also makes it appealing for investment.

However, real estate is an asset form with limited liquidity relative to other investments. Additionally, it is capital intensive and is highly dependent on cash flow. A stationary, physical asset provides reassurance and contentment over other financial assets. With a wide variety of products available from SOBHA that caters to consumers from all walks of life, the prospect of investing in real estate has certainly amplified manifolds in the recent times. More importantly, the presence of a brand like SOBHA, which is not only transparent but also has one of the best track records of timely delivery, has strengthened the consumer faith in real estate sector. This is reiterated by the recent Track2Realty Brand Report, which places SOBHA at the top spot. Therefore, it is safe to assume that when an investment in real estate is made, long-term benefits are assured. More so, if the brand commands a trust among consumers.

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