To be or not to be? This is the question that lingers on the minds of millions of Indians when they think about real estate investing. For a large number of people, the high property prices appear to be prohibitive, and for many real estate investing does not make sense for some reason.
But believe it, not having real estate in your portfolio can hurt your future prospects in a big way. You may be earning well today but that is all active income. How do you make passive sources of income? Real estate investing comes to rescue here.
Whatever is your budget, buy real estate as early as possible in your life. If you can’t afford to buy a 2BHK or a 3BHK residential property, buy a 1BHK apartment or buy a commercial property. But do it.
As per a recent report, the investor wealth in real estate is expected to double up to Rs 1.21 lakh crore in the next five years, from the current Rs 60 lakh crore. Even in the year 2015-16, which was marked as a period of lull, the investor wealth in real estate grew by more than 8 percent.
It is for sure that property market is never going to die. It is one of the most popular asset class. Legendary investors like Warren Buffett and Donald Trump swear by real estate. In fact, Trump who is now the president of the United States made his multi-billion dollar fortune out of real estate investment only.
What stops you from entering the real estate market?
Are you worried about the risks involved in real estate investing? Is it because of the news updates regarding delayed projects, stuck investors, etc.? But doesn’t every venture involve risk. Your job involves risk. Your business involves risk.
Risks and rewards go hand in hand. You need to learn to manage risks. Learn from the misfortune of others and move ahead. If everything comes to your way easily that means you are on the wrong path.
Why can’t you enter the market by making some small investments in ready-to-move-in units? These days, you can easily find compact commercial units that are priced low. It requires a corpus of Rs 5-15 lakh, and there are chances that you also get lease guarantee from the developer itself.
Is it the right time to invest in properties?
As the market is slow, it is all the more apt to go for real estate investing on your own terms. The real estate developers are offering good deals and are willing to negotiate with you for quality transactions.
When the market will pick up, you will be in a much better position to make the best out of your investments. No real estate market remains dull forever. You can observe several examples around yourself. The chunks of land you used to call as jungle some years ago are now buzzing with projects and investors.
India is going through rapid urbanization. Cities are expanding fast with horizontal growth. A decision taken with logic and proper due diligence should not go waste in the long run. Just that you need to have patience. As Warren Buffett advises you should invest in such a way that even if the markets are shut down for 10 years, it does not bother you.