Is Investing In Real Estate Safe In The Current Scenario?

Is Investing In Real Estate Safe In The Current Scenario?

By siliconindia   |   Wednesday, April 2, 2014

BANGALORE: Risk is always, and has always been, a part of an investment portfolio. The recent times of recession has drilled this fact in even deeper into the conscious of a low key investor who doesn’t have millions to lose. But in testing times like these, there is always a debate on what to invest in while keeping the portfolio diversified and still maintain a modicum of stability and occasionally return a rush of adrenaline in the form of a handsome dividend? The answer that most experts will furnish is: Real Estate.

real estate marketThough it is true that most investments in Real Estate involve hefty sums, the returns are generally much more stable than those in other offerings of the financial market. For one, by investing in Real Estate, you own a property that would most likely appreciate for the most part of your possession. Secondly, historically, Real Estate has outperformed every single commodity and equity available in the stock market which can be used as an investment. Thirdly, it is a physical asset that not only provides stability, but also relative simplicity and greater returns.

Owning a property benefits an investor in multiple ways. It prevents cash outflow if you reside in a house of your own. It also arranges for cash inflow through rent and leasing. In addition to the appreciation in your capital outlay, it also offsets the growing inflation since rents are revised on a periodic basis. Further, the finance and EMI options available make the process considerably less time & effort consuming. If planned in an immaculate manner, investing in a property can be as handsome an investment as any other. The only thing to be kept in mind is the groundwork that needs to be in order well in advance as otherwise; it would lead to your outlay being at a greater risk than ever before.

By- Vikas Raj Sharma, Jt. Managing Director, Cosmic Structures Ltd

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