Stock markets are bouncing back, interest rates have come down from this peak, properties are cheaper than what they were a year ago and GDP is again on the move up. Does this indicate that, it's time to invest in real estate? Real estate investment involves the commitment of funds to property with an aim to generate income through rental and to achieve capital growth. When a person acquires real estate, he or she also acquires a set of rights, including possession, control and transfer rights etc. It is important to understand the dynamics of the real estate investment because it usually involves the locking of large capital over a period of time. On comparing investing in stock market with real estate investment you will find, both, stock investing and real estate investing have the same basic financial objectives: People invest money in both instruments to make money from growth and income. Both sectors have merits and demerits and are suitable for different sections of people. We believe real estate sector has an edge when it comes to security and leverage.
* An investment in property is considered a safer bet as you are investing in a "real" asset.
* Investors can borrow substantially to invest in a property, in certain cases upto 90 percent of the cost of the property.
It is very important to note that, awareness is the key to maximize returns in any investment. If you are good at identifying, managing and financing real estate properties you will undoubtedly do much better as an investor in real estate! Traditionally many of us are comfortable with real estate investing because (we see it every day and better understand the factors that affect the real estate prices around us). Real estate properties have historically gone up in value without many violent downswings. The stock market usually experiences a greater degree of volatility.
'Although the real estate sector has started showing some signs of revival, a majority of the industry experts expect the residential segment to recover by the end of 2009 with a 25-30 percent renewal in demand, said the survey report by the Federation of Indian Chambers of Commerce and Industry (FICCI). Demand for houses in the range of Rs. 15 - Rs. 25 lakh will go up by 26 percent, while those in the bracket of Rs. 25 - Rs. 40 lakh will see demand rising 22 percent, the chamber said. In another survey report by FICCI, the future of Indian retail industry bright in the coming six months as implied by the data, real estate rates in India will go up by 10-15 percent over the next four to six months.
For those planning to take a loan to buy their house, there is good news too. Several banks have slashed home loan rates recently to promote financing making it more lucrative for the buyers to invest in real estate.
Real estate prices across the nation were observed to have corrected earlier this year, however considering the last financial quarters' performance the demand for real estate investment has certainly inched upwards.
Considering the availability of various real estate options to invest in at the right price, along with best rate home loans and the future growth predicted, by FICCI, there has not been a better time to invest in real estate than now!
* An investment in property is considered a safer bet as you are investing in a "real" asset.
* Investors can borrow substantially to invest in a property, in certain cases upto 90 percent of the cost of the property.
It is very important to note that, awareness is the key to maximize returns in any investment. If you are good at identifying, managing and financing real estate properties you will undoubtedly do much better as an investor in real estate! Traditionally many of us are comfortable with real estate investing because (we see it every day and better understand the factors that affect the real estate prices around us). Real estate properties have historically gone up in value without many violent downswings. The stock market usually experiences a greater degree of volatility.
'Although the real estate sector has started showing some signs of revival, a majority of the industry experts expect the residential segment to recover by the end of 2009 with a 25-30 percent renewal in demand, said the survey report by the Federation of Indian Chambers of Commerce and Industry (FICCI). Demand for houses in the range of Rs. 15 - Rs. 25 lakh will go up by 26 percent, while those in the bracket of Rs. 25 - Rs. 40 lakh will see demand rising 22 percent, the chamber said. In another survey report by FICCI, the future of Indian retail industry bright in the coming six months as implied by the data, real estate rates in India will go up by 10-15 percent over the next four to six months.
For those planning to take a loan to buy their house, there is good news too. Several banks have slashed home loan rates recently to promote financing making it more lucrative for the buyers to invest in real estate.
Real estate prices across the nation were observed to have corrected earlier this year, however considering the last financial quarters' performance the demand for real estate investment has certainly inched upwards.
Considering the availability of various real estate options to invest in at the right price, along with best rate home loans and the future growth predicted, by FICCI, there has not been a better time to invest in real estate than now!