6 Reasons Why Real Estate is the Best Long Term Investment Options

Owning a home is the ultimate goal for most of us. We work towards achieving this goal for the better part of our life. One wise choice might lead to a solid return. In India, recent years have seen more investment in real estate like never before. This is because of the various government policies and regulations that seeded a sense of hope for real estate in India. The RERA (Real Estate Protection & Regulation act) of 2016, lead the way to transparency in the real estate sector that in turn brought peace in the minds of home buyers. There has been a substantial increase in demand for both commercial and residential real estate, in metro cities like Chennai, Bangalore and Hyderabad. The growth in the IT sector feeds to the increase in infrastructure and thereby increases the demand for commercial real estate. The increase in affordability and the growth in the affordable housing sector enabled people to buy new home in Chennai. So, this has become the right time to invest in real estate, in order to reap the benefits later on. Why investing in real estate is the best option for the long run?

#1. Rental returns

The demand for homes is increasing with the increase in population and a decrease in space. In Chennai, the rental returns are increasing rapidly. Initially, the high rental income was seen only in the main areas, but in recent times due to the expansion of the city, the growing suburbs are also fetching a good rental income. Vanagaram is a suburb of Mogappair, and the rental in Vanagaram starts from 20,000 ₹ per month for 3 BHK apartments. This is likely to increase in the years to come.

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#2. Appreciation over a period of time

Real estate is always appreciating. If not today, then tomorrow. Take for example, in 2009 the square feet price for an apartment in Anna Nagar was 5500 ₹. Now, the sqft price of an apartment in Anna Nagar is 17000 ₹. It is almost one of the costliest areas in Chennai. The city is always expanding and the need to expand contributes to the appreciation of the properties.

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#3. Easy investment

Unlike bonds and stocks, real estate is always a safer bet. You needn't keep planning and following up on the investment on a regular basis. Real estate lays out options; You could liquidate, rent or live in the property you own.

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#4. Risk-free investment

Once you go for an investment with reputed developers who have everything aligned for you, you wouldn't have to worry. Investing time on the initial research prior to buying could be the best way to a risk-free investment.

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#5. Tangible investment

It is a tangible asset. It not only protects your investment from inflation but also might bring a psychological belonging and a sense of achievement. Owning any property might create satisfaction and make our lives full.

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#6. A roof of your own

Almost 70% of people invest in real estate to live in their own home for comfort and protection. Whatever happens, you would have a house of your own where you could reside peacefully.

In our country, home is a sense of pride and joy as we develop an emotional connection with it. This is the right time to buy apartments in Chennai. With the tax benefits and the growing infrastructure buying in Chennai is attracting foreign investments as well.