The Right Time To Invest In A Real Estate Asset For Rental Income

Now is the best moment to begin investing in real estate. This is why.

Share on facebook
Share on twitter
Share on linkedin
hourglass and calendar 2021 08 26 22 29 56 utc min scaled

The real estate market is in a state of upheaval all of the time. Economic variables, consumer confidence, and supply and demand levels all play a role in determining whether or not a market is hot. This might make it difficult for a new investor to choose whether to invest in real estate and whether or not now is the best time to do so. Take a look at how and when to get started in real estate investment no matter what the market is doing if you want to get started in real estate investing.

Also Read: Financial Goals For Real Estate Investments In Your 40s

When to invest?

  • The situation on the market

There are times when market circumstances appear to be adverse for starting a real estate investment, but there is always a chance to earn and succeed in real estate — it’s just a question of recognizing what possibilities are available in the current market.

  • A buyer’s market exists

A buyer’s market is defined by a surplus of inventory and a lack of demand, resulting in lower real estate prices. A high inventory level can be caused by a variety of circumstances. The coronavirus pandemic, for example, has resulted in lower demand for specific property categories, such as office, hotel, and lodging, and residential rental housing, especially in high-density metropolitan regions. The Great Recession also created a strong buyer’s market, with real estate values at an all-time low, making it an opportune moment for investors to acquire homes at bargain rates.

Also Read: Hyderabad: The Emerging destination for commercial real estate investment in India

Since real estate values are generally down and sellers may have a strong desire or need to sell, a buyer’s market might be a fantastic time to get started investing in real estate because you can negotiate for cheaper pricing, concessions, or other creative conditions when buying. Determine which real estate markets provide the most investment opportunities if you want to go into real estate and it looks to be a buyer’s market. All real estate property kinds and local markets are rarely affected in the same manner. Residential fix-and-flip or rental properties may provide greater opportunities than commercial real estate rentals, or vice versa.

  • Seller’s market

Low inventory and high demand characterize a seller’s market, driving up real estate prices. Low mortgage rates, a scarcity of rental inventory, or high rental pricing may all contribute to generating the ideal market circumstances to boost demand for residential housing and other asset classes. Because values are high and demand is strong, a seller’s market is sometimes referred to as a “strong market” by the media or other investors. It’s a competitive market right now, but that doesn’t mean it’s a bad time to get started in real estate.

If the market is now in a seller’s market, consider which industries provide the most potential and aren’t likely to see oversupply in the next six to twelve months. The self-storage sector is a fantastic illustration of how an asset class may look robust and loaded with potential at first, but then flatten out after investment dollars, interest, and valuations went up because supply swiftly surpassed demand in many locations. Even if the investment costs more now than it did a few years ago, there should still be room for future capital gain or cash flow through rental revenue or passive income like dividend payments if you’re buying for a long-term passive investment. In present market conditions, long-term assets such as rental property or real estate investment trusts (REITs) are excellent choices.

Also Read: Can You Become a Millionaire Through Real Estate Investments?

Why now is the best time to invest?

  • Prices are at an all-time low

In India, real estate values are already at historic lows. However, if you anticipate them to fall any further, that is unlikely to happen. Because, aside from hidden expenses like interest and inflation, a stable central government combined with a shift in market mood will ensure that prices do not fall much more.

  • It’s a buyer’s market right now

Developers are presently giving bargains that have never been seen before. If you’re a consumer, you’re unlikely to find such appealing bargains or payment options. As a result, move quickly to invest in real estate. The chance to get a decent deal with discounts and incentives isn’t going to stay forever.

Also Read: Smart Real Estate Investments: What Are Grade A, B, C In Commercial Properties

  • Appealing Financing Alternatives

The market is now sluggish, and buyers are scarce. As a result, you’ll find a variety of appealing financing alternatives to help you buy your ideal house, with every major provider vying for your business. It’s also a good opportunity to switch to a bigger house or increase your budget to obtain a better deal. Customers may make use of simple payment options and customized payment plans offered by players.

  • Best Time to Switch from Rented to Own Property

Buying a home instead of renting is a highly appealing choice for homebuyers at the moment. However, if costs grow, it will become less appealing.

Just be careful not to get caught up in the competition or to demand too much of a discount in the market you’re in. All too frequently, I see new investors assume low pricing that isn’t indicative of the current market, and they’re beaten out by other investors who recognize they can spend more and still earn right now. On the other hand, it’s not uncommon for an investor to become so enthralled by the competition that they overbid and wind up paying too much for the property in the end. You should be aware of your numbers. If your real estate investment is primarily for passive income, utilize your income analysis to calculate how much you can pay without compromising your yield or return.

Assetmonk is India’s Fastest Emerging WealthTech Platform offering some of the top-notch real estate investment opportunities in Bangalore, Hyderabad, and Chennai. We are often credited by our investors for the best quality services and top-quality products. Visit us to know more. 

The Right Time To Invest In A Real Estate FAQ'S:

This might be a great moment to buy a house whether you’re a first-time buyer or want to enhance your lifestyle. There are two important considerations in favour of house purchasers from a purely financial standpoint: reduced property prices and lower cost of financing to acquire a home.

No, you are not too old to purchase a home at the age of 40. There is no such thing as being too old to accomplish anything!

Related Articles

istockphoto 1313421433 612x612 1

Pradhan Mantri Kisan Samman Nidhi Yojana

What is the Pradhan Mantri Kisan Samman Nidhi Yojana? The Pradhan Mantri Kisan Samman Nidhi Yojana is a plan initiated by the Indian government. It gives income help of as much as Rs. 6000/- annually to all marginal and small farmers. Families of land-owning farmers receive an Rs. 6000/-  cash advantage a year under the Pradhan Mantri Kisan Samman Nidhi Yojana plan. This amount will get paid Rs. 2000/- in 3 equal payments per 4 months. Also, read Saving Schemes in India. The Motive of the Pradhan Mantri Kisan Samman Nidhi Yojana? As we all know, agriculture is the backbone in the Indian economy. So, farmers are an important part of society. But, the economy has socioeconomic gaps between the urban areas with rural areas. So, farmers battle with long-term profitability. This problem has afflicted the majority of India’s people since its freedom. The state and federal governments have worked to solve this challenge. They have also introduced a variety…

Read more
istockphoto 951524746 612x612 1

Post Office Time Deposit

So, what is the Post Office Time Deposit Scheme? India Post provides the post office time deposit as a modest savings program for Indians. Post Office Time Deposit Scheme is a savings account investment provided by India Post. This program gets intended for depositors who desire to make a one-time deposit with an FD of 5-year which is a tax advantage. With a few exceptions, it is identical to a bank fixed deposit. People can create a post office time deposit account by approaching their closest post office or by utilizing India Post’s official app or website. India Post has been in existence since 1854. It is the most globally disseminated postal network, with over 1.55 lakh offices spread over India. Majorly known for mail delivery, India Post also offers these services: Small savings schemes. Postal Life Insurance and Rural Postal Life Insurance Instant money order E-money order. Mutual funds. Services for money transfer Also read Post Office Investments –…

Read more
istockphoto 1364622197 612x612 1


PPF Vs SSY: What is the difference between the two? Sukanya Samriddhi Yojana Account (SSY) and Public Provident Fund (PPF) are the safest investments. These are accessible to those desiring significant financial development with a low-risk component. So, if you wish to invest in any or both of these schemes, you would investigate and check. Financial objectives, risk tolerance, rate of interest, and versatility should all get addressed. Read SSY – Sukanya Samriddhi Yojana Benefits & Interest Rates. PPF Vs SSY PPF and SSY are solid investment options, although they differ in important ways. The Sukanya Samriddhi Yojana is a female child welfare plan. It helps to safeguard a girl child’s future. But, the PPF is a program that enables depositors to receive zero-tax interest. In India, the Public Provident Fund (PPF) plan provides a long-term investing choice. It provides high profits while also giving tax deductions to the investor. A PPF account may get created in any private or…

Read more
Small Savings Schemes

Small Savings Schemes

Small savings schemes are an excellent way to save money. They offer a good rate of interest and can be used as an alternative form of collateral for investments, bonds, and property. The following schemes are available throughout the country and are some of the most popular ones that you can consider: Post Office Time Deposit Scheme The Post Office Time Deposit Scheme (POSTD) is a small savings scheme launched by the Government of India to provide investment opportunities in the secondary market. The scheme was launched on 15th September, 2015. This scheme is popular in rural as well as remote corners of the country, where the people have limited access to other financial products or alternative investments. The Ministry of Finance sets the interest rates for this scheme based on the performance of government securities, which is generally spread across the yields of the government sector. For 2022, the rates of interest are 5.5%, 5.7%, 5.8%, and 6.7% for…

Read more
istockphoto 1033711098 612x612 1

UAN Helpdesk

What is the UAN helpdesk for PF account holders? UAN is a 12-digit Universal Account Number that is assigned to every PF account holder at the time of joining the first job. The PF number when allocated, is used for each organization through the use of UAN. The new PF identification number that the person is associated with is his UAN in each new company of which an employee is a part. UAN can be described as a code that is used to identify several PF account IDs for an individual participant. It serves as an umbrella for multiple PF IDs assigned to individuals by various organizations. Also read UAN Registration & Activation Process Online. What exactly is UAN Helpdesk? The Employee’s Provident Fund Organization, India has a separate helpdesk online for (Universal Account Number) UAN-related issues and complaints. Users can access the helpdesk online and resolve their issues on their own or contact the executive offline. Employees can also…

Read more
child saving scheme

Child Saving Schemes

A child is the most precious thing in your life, and it’s important that you take care of them. However, it can be hard to know how much money you should save for their future education, health, and insurance needs. There are many different types of child saving schemes available for parents who want to safeguard their children from financial difficulties later in life. Here are some examples: Sukanya Samriddhi Scheme The Sukanya Samriddhi Yojana is a child saving scheme specially made for girl children. It was launched by Prime Minister Narendra Modi on January 22, 2015. The objective of this scheme is to promote the financial inclusion of girls in India by incentivizing them to save money through the Sukanya Samriddhi account. The interest rate ordered by this scheme is 7.6% per annum, and the minimum and maximum investment amounts are ₹250 and ₹1.5 lakh per annum respectively. Also, the maturity period of the Sukanya Samriddhi Scheme depends on…

Read more