Property as an investment works well over a long term, says DEEPTI GANAPATHY
Property as an investment always yields the best returns. In a market where inflation is the only factor going up, property is the best bet to watch your money grow. In the current scenario, investors need to take a long-term view unlike in a speculative market where one could earn 25-30 percent returns in a matter of a few months.
While the long-term story continues to be intact, you need to keep in mind a few factors before taking a call on investments. For instance, it is important to focus on the location of the property.
With the economy showing signs of recovery and global fears of recession beginning to fade away, the real estate market is expected to pick up. When you purchase a property during an uptrend, your investment could appreciate in no time.
Reasons like lower home loan rates, property price correction, apartment downsizing, and a recovery in the job market are translating to a pick-up in demand for residential projects. With improvement in macroeconomic conditions as well as buyer affordability, developers are witnessing a stronger response to new launches across cities.
Location
In a city like Bangalore, the key locations where your property will fetch a good price have to be close to the airport, metro network or close to the IT parks. This is because connectivity and access to the workplace are the two most significant factors that need to be taken into account while scouting for the ideal location.
Even when you consider letting out your property for commercial or residential purposes, these are the factors that are going to get you the best rental returns in the market.
Proximity to the IT belt, shopping malls and schools will enable you to get higherpaying tenants from this market segment.
Key demand drivers
Some of the key drivers that are pushing the property market are:
price correction: Residential property prices have witnessed a correction across India. Affordable housing: With the reduction in property prices, many developers have down-sized apartments in order to attract a wider category of buyers. This has enabled a budget segment buyer to select a house at a better location or at the same location but at a lower cost.
Some developers have also introduced the concept of condo apartments, one-bedroom and oneand-ahalf-bedroom units to widen their customer base.
Home loan rates: Over the last few months, interest rates on home loans have been very affordable. This has encouraged young homebuyers to seek a home loan immediately so that they have time on their side to pay off the loan over a period of 15 years or more.
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