Fear V/s. Prices In Real Estate

Fear in real estate

 

The dreams of owning a house seem to be a nightmare for the layman as such, an industry is experiencing a downward curve and it creates fear in minds of investor to bank their money in this sector.

We feel it’s FEAR that’s driving sentiments and not the PRICE. People are still buying at moderate prices provided, they are seeing the commitment from developers to finish the pending work.

On the contrary, though there are slowdowns in the prices, some cities like Pune has shown a consistent efficient performance and has given a good return on investment to property buyers.

The capital requirement in the real estate has always been high and it becomes difficult for the small investor to enter into such market. It creates a dilemma for that trader whether to take the risk after studying all the factors or invest into any other options, which tend to be sounder and present him a decent return.

Many people who would like to own homes have fears that prevent them from buying. And rightfully so, buying a home is usually the largest purchase and a drama person ever makes. If you’re one of those people who are hesitant, take heart to overcome your fears and become confident that you will make a sound purchase.

The major reasons you may be holding off while purchasing a home are as follow:

The loss in Property Value:

The decline of property may be possible at any point of time; generally, a poor or mediocre economy keeps the property value down. Even the veterans sometimes fail to predict the prices.

Overwhelming Maintenance Costs:

All property has an upkeep cost, and many properties have it in huge number. If you invest in such business, you must bear it. In fact that will get you exponential returns.

Buyer’s Remorse:

The major concern is to invest in a wrong property and maybe it is because of lack of knowledge and market study. Team Propbuying always feel that Home is an ENGINEERING product & you have to trust the technical aspects more than look n feel. There are various permissible grades of concrete, steel, cement & raw material. Which defines the strength of your house. Reputed developers always have those things uncompromised, hence always buy BRANDED residence.

Being Unable to Afford Your Mortgage Payment:

Many people wonder how they will afford their mortgage if they lose their job. They also might see that the mortgage payment required to afford to invest in their area exceeds what they currently pay in rent.

However, when we talk about the major metropolitan or fastest developing cities of the country situation might change. The saying in the financial markets “Higher the risk appetite more will be the profit.” Proves to be correct when the particular place has the high potential to invest in and have the higher probability of giving the better returns to the buyers. The capital appreciation will always be more than your mortgage repayment. Secondly, in employment, you won’t be earning same every year so you can get leverage of time so that the EMI cost seems manageable once you got hikes every year. Team Propbuying always advice it’s CREATING an ASSET…so buy SQ.FT as much as possible!

Impact of Risk on Pune

Pune is being one of the important cities in the state of Maharashtra, and for an overall development of the economy of our country, the city has shown some tremendous flows in the real estate industry. Primarily, being the home of many headquarters of MNCs, it has created several opportunities for new ventures and start-ups. The demand for commercial and residential property has shown a step upward growth.

And as per the law of economy with the increase in the demand, there will be an increase in the prices of a commodity. The investors or buyers presently are investing in the real estate, after analysing all the factors will have the long-term benefit in future. The investment can give an exceptional return to the dealer. Currently, Pune compared to other cities of India provides more return in the range of 7% – 12% on your investment.

Anything in Excess is Harmful:

The rising prices of the properties show the level of consumption of land in the market, which can be a growing concern for the sustainable development in the future. The major property of Mumbai, the heart of Maharashtra being on the verge of exhaustion may create the similar scenario for Pune.

The rising prices even affect the mid-income households to buy their property and slowly and gradually it becomes a dream for them.i.e. the standard 2bhk in city limits of reputed developer was costing 30-45 lacs in 2010 whereas it has gone to 60-70 Lacs in same locality today…so the day is not too far when we will speak about 1cr as min budget to own 2bhk in good location of Pune.

Thus, bearing a risk in an inevitable part of investing in real estate, however, Pune seems to be growing the economy in this market a little-analyzed information of the current rates and areas can mitigate the risk factor and might present you double the rate of return through investing into this city.

Take your TIME but Don’t DELAY !!!