Secure Your Financial Future By Investing In Real Estate

25 Mar 2020

Financial security is in everybody’s mind. For most of us, we think of today, getting ready for work, completing our work, having dinner, some leisure time with family, and then repeat. We follow this “routine” for 50 or so weeks a year. We get a day off in a week, a few extra days on leaves and yearly twice perhaps take holidays for a vacation. The trouble comes at retirement when we suddenly land on a zone when we have lots of time. As we know, time costs money, but if our nest egg only embraces to maintain our previous lifestyle, how will we fund anything extra on retirement? Like time, fun costs money, too. When you don’t have scheduled work hours, you have plenty of time, so you need something where you can engage yourself. Moreover, when you are aged, the cost of medical is exponential so you need to maintain sufficient fund for it.

Investment in Real estate is good thinking, especially in an early or regular retirement plan. You need to think about the investment plan, research, plan and manage the property. If you can do these three things, your property can ensure a steady income all through your years.

Real Estate Investment – Proof In The Pudding

When you are investing in a property, you must ask yourself what will be there for you in future. In most cases, real estate investment in most cases beneficial because regardless of the area it offers an opportunity to acquire an appreciating asset. Real estate value appreciates over time, and the appreciation allows you to grow a small sum of money into a significant retirement asset.

Real estate market size is expanding especially residential market. The sector is contributing 13 per cent of India’s GDP by 2025. It is estimated that by 2040, the real estate market in the country will be grown to Rs. 65,000 crore from Rs. 12,000 crore in 2019. The reasons for growth are various including increasing incomes, urbanization, and increasing co-living market size.

The Real Estate Investment Trust (REIT) has been approved by the Securities and Exchange Board of India (SEBI), which will help investors to invest in the market. It is estimated Rs. 1.25 trillion of opportunity would be created in the market.

Real estate investment is not a singular concept. The government of India has given lots of leverage to this sector, for example, affordable housing can give returns up to 10% in the long-term. The residential property now includes serviced apartments, senior living, smart city-based housing and co-living concepts.

The real estate sector in India lures lots of foreign investments. With 100 per cent FDI is being allowed by the government, private equity players are now lurking in this sector, banks are giving big loans to developers and financial institutions are floating real estate funds. In this scenario, an investment in a property is a pretty good idea.