Location: Pune, INDIA
At the onset, I respect all Asset Classes. My belief in Real Estate as an Asset Class as an Investor and Realtor in Pune, INDIA excited me to blog. I firmly believe Real Estate should be a part of a healthy Wealth Portfolio.
There are many asset classes like Equity investments, Fixed income, Property, others.
Real estate provides diversification of assets.
Good investments have the potential to live the life of our dreams.
In a Real Estate investment one can expect:
RENTAL INCOME
CAPITAL APPRECIATION
SLOWER BUT STEADIER CAPITAL APPRECIATION IN LONG TERM
A combination of rental income and capital appreciation certainly beats inflation if held for the long term.
If invested properly, returns from real estate property outsmarts inflation by miles.
Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.
Marshall Field
Existing Real Estate Investors
- Disruption could have dented your ROI as an investor
- Focus on capital appreciation in the future
For New Investors
Look out for opportunities/deals during disruption. Invest small. Spread the risk. Look at pre-leased properties like small commercial shops/offices.
ROI ANYTHING OVER 5% WITH A LONG-TERM VIEW ON CAPITAL APPRECIATION
Bank loans are lower than before
Balance your portfolio
Spread the Risk
Can you monetize your holiday home?
Yes. If invested in preferred destinations. It will generate passive income and secondly, it will be maintained.
You have created an asset for long term.
Other forms of real estate investing are through:
- REIT (Real Estate Investment Trust)
- Fractional OWNERSHIP
Some data showing Capital Appreciation
- Invested in 1995 – Rate 680 PSF – Area 2500 Sq. Ft.
Today Sell Rate 12500 PSF = 18.5 times approx. in 25 years - Invested in 2017– Rate 6250 PSF – Area 1600
Today Sell Rate – Rate 10500 PSF– if sold 60% appreciation in 3+ years
A word of caution – Due diligence is important and take advise of a trusted Realtor
These are my observations through my personal experience as an Investor and Realtor and through the experience of clients/friends
I am bullish on real estate for the long term.
Conclusion: The idea to invest in any Asset Class is to beat inflation and hold for long term for capital appreciation.
Author: Jyotesh G Narang, Realtor, Life Inspiration Advisory LLP., Pune
Disclaimer: The views expressed in this article are the opinion of the author and should not be construed as a promotion.
