Which one will be suitable for you in 2021? REAL ESTATE INVESTMENT | FLAT OR PLOT AS AN ALTERNATIVE INVESTMENT?
Real estate Investment has been an emotion for Indians since ages, “Apna ghaar Apna Makaan” is always a dream for all middle class Indians. Let us analyse & interpret the financial perspective of Investing in Flat & Plot/Land in 2021. Real Estate has been a potential alternative investment for most of the Indians, it can generate income in the form of rents as well as capital gains.
Real Estate as an asset class can provide diversification benefits to an investor’s portfolio and a potential inflation hedge because rents and real estate values tend to increase with inflation.
What is Diversification & Potential inflation hedge?
Let us understand it with a simple scenario, diversification refers to picking up multiple fruits of various characteristics and making a favourable basket for an individual as per their tastes & preferences. So that if , 3 out of 10 fruits rot for any external reasons then, we have rest 7 to manage our appetite. Similarly, Investment Diversification works in the same way to balance our portfolio returns and reduce the risk of losing the entire asset.
Potential Inflation hedge will help an individual investor grow his/her money irrespective of increase in cost of living/prices as Land is always an appreciating asset and its value increases with time.
Analysis & Financial Perspective towards Investment in FLAT
Let us begin with an extensive analysis of FLAT Investment
FLAT
We will learn more regarding rental incomes and Real estate decision factors with respect to loans in the coming journals. Stay tuned!
We will learn about Investment in PLOTS in the coming journal. Stay Tuned!
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