4 Reasons to Invest in Real Estate in 2013

Real estate has been considered an asset and an investment since centuries. Buying, holding and selling of property is definitely not a new concept and one that has flourished and evolved over the years. With different arena of real estate property types like residential, commercial, industrial, empty land lots and more, this market is a dynamic and complex one. Like many other asset classes, the real estate sphere has seen its share of major ups and downs, more so in recent years when the global financial scenario was in shambles. This has made many an investor shy away from putting in their hard earned capital into properties of any sort.

But things are definitely showing signs of a positive turn around in 2013. Just a few months into the year, we already see a difference in the real estate industry, with an increased demand especially for residential properties around the world. There are definitely signs of better things to come, evident in a developing country like India that has numerous new properties in Mumbai mushrooming all over the city. You will find loads of different properties in various price classes in the market today and pickings are good for those who are interested.

Let us take a look at a few reasons why –

• Firstly, when looking for long term investments, real estate is one of the most popular options out there. Yes, there are plenty of investors who buy properties and sell them in few short months called ‘flipping’, but there are many, many more who believe in it’s long term potential. If you are willing to take the risk of defaulters and late payers, then buying for rental (both in the residential and commercial sectors) over the long run can give you immense pay back from your rental and / or lease income as well. It is one of the asset classes whose values increase over time and if you can hold on to them for a while, you may get a huge pay out at the end.
• Right now the prices are still relatively lower than what you would expect in many areas, since owners and sellers are still reeling from the after effects of the economic downturn. Real estate developers too are targeting the masses and not just the classes. This may be a good time to look at properties before the recent shift in real estate consumer habits drive up the prices to sky high again. In fact the housing sector in the United States too has already seen in boost in sales and a marked increase in prices since the last quarter of 2012. Now may be the time to cash in and buy a piece of the pie.
• Mortgage rates are still at a relative low into the year 2013, favouring real estate investment. Find out whether what special interest, bank loan and mortgage rates you qualify for and you may be able to afford a property or properties you never thought was possible before due to lack of capital.
• Another aspect to consider is that the sheer variety of real estate as well as the quality has grown tremendously in recent years. Real estate developers around the world are building amazing projects that can dazzle even the most discerning buyer. The recent trend of green or eco friendly construction has also opened up a new investment avenue for buyers today.

Remember, the reasons to buy now may be manifold, but it is important to educate yourself as to what a truly good deal in real estate is and what would make a great investment option for you.

Bio –

Karan Khurana is a real estate broker with his own business since the past 11 years. He strongly believes that properties in Mumbai are a great investment option for people today. In his spare time he loves to write and is also doing a course in interior design. 

Tags: investing for beginners, investing in property, investing money, real estate investment, real estate investor

Category: Real Estate