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Why should you invest in real estate during this lockdown?

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Zara Wilson
Why should you invest in real estate during this lockdown?

Yes, it’s a grim situation out there be it in health or economy. The share market, crude oil prices have crashed & there is panic everywhere. This Coronavirus pandemic has taught us that uncertainties are a part of life. So, are we prepared to face such a situation again?
You can utilise this time in lockdown to invest in sources of passive income like flats in Kakkanad, the IT hub of Cochin, to secure your future and safeguard your family. Real Estate seems to be the most reliable investment option as it has a great appreciation for capital and good return on investment with the passage of time.

5 Reasons to opt for real estate during this lockdown
Many people may be interested in buying a property during lockdown times due to these factors:

Competitive Risk
The low volatility of real estate when compared to equities and bonds makes it a highly competitive investment.

High Tangible Asset Value
Real estate is not a liquid asset but an asset you can hold tangibly. This increases its reliability and returns on investment.

Attractive and Stable Income Return
Property has a rental yield much higher than returns on any traditional sources of investment. For commercial property, it can yield up to 12% ROI and lowest to 5% ROI (with capital appreciation) depending on lease terms.

Inflation Hedging
There exists a positive relationship between GDP growth and the demand for real estate. As the economic situation improves, demand for real estate drives higher rents & this translates into higher capital values.

Deficit Demand
These days the property market is facing deficit demand. This generates active offers by builders in Kochi with lucrative payment plans and additional offers resulting in lowering the cost of the property. Buyers can expect to buy a property as low as the launch price during this lockdown.

Reduction in Repo Rate
Following the RBI announcement for reducing Repo rate to a new base rate of 4.4%, loan interest rates are expected to reduce by at least 0.75%. Hence, it’s indeed a good time to buy your home.

Passive Income
A rental income can be expected from small investment options in the property market. This is a golden opportunity to create a separate asset class in your portfolio.

Demand
Lockdown creates low demand & discounted rates on good properties. But once the economic condition starts to settle, the demand curve will go on the high and rates will increase. This is the time to take action!

Brand Integrity
During the lockdown, you can research about the projects, builder’s background etc. thoroughly. You can use this time to choose the best flats in Kakkanad for yourself from the best builders in Kochi.

Book your dream flats in Kakkanad with Asset Homes, the first and only builder in Kerala to deliver 58 residential projects in just 12 years. Asset Homes upholds the Asset Values: Prompt delivery, total quality, customer-centricity and responsibility to the community.

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