19 - June - 2020
Today, safety and security is a top priority for everyone. Although the journey to a ‘normal’ way of life may take some time, living with the ‘new normal’ is unavoidable. How does real estate investment in such a scenario seem like a wise move? Let’s find out.
There are several risk factors that one considers when it comes to investments of any kind. Although they say, “higher the risks, higher the returns”, today everyone wants to invest in a safe asset. Real estate happens to be one of the safest assets to invest in during such times. Here’s a look at the risk factors involved and how real estate seems like a viable option even now.
Unlike debt funds which are a high-risk asset, real estate is reasonably liquid and maintains the monetary value and stability in times of crisis. On the other hand, debt funds are at risk of becoming illiquid and losing monetary value and principle erosion.
As you may have already heard, real estate is one of the safest investment options today. Being at low credit risk and reasonably liquid, real estate offers stable and nominal payoffs unlike debt funds wherein the exposure to multiple volatile assets is high.
Real estate is a tangible physical asset which is measurable. In the case of debt funds, being intangible can be highly risky as they can just as easily disappear from your bag of assets.
The sense of ownership completely lies with real estate. If you buy or invest in a real estate property, you can call it your own without having to answer to anyone. However, in the case of high-risk debt funds, just because you own a certain percentage of those funds, you cannot call them your own. Therein lies the difference.
If there ever comes a time where you have to sell your real estate property, you just have to find a buyer who’s willing to buy your property and cash it. However, when it comes to high-risk funds, the net asset value or NAV determines the value of the asset. In case you need to sell the asset and the NAV for that particular day happens to be less, you will be in for a loss.
Therefore, investing in a comparatively low-risk asset like real estate seems like a good deal in the current scenario. It will make you the decision-maker and owner of the property thus allowing you to reap the benefits of your investment.
If you’re looking to invest in ongoing residential projects in Pune, you can explore Rama Metro Life, Tathawade. These residences are placed at the centre of ultimate comfort and convenience. So, if it’s a 2 BHK flat near Wakad that you’re interested in buying or investing in, you can explore the world of endless possibilities it offers.