With the recent surge in the stock market people are afraid to do fresh invest in stock market. Now the next option is to invest in Real Estate.
Is it the right time to invest in Real Estate ?
There are mainly two options for a new real estate investor.
1. Residential Sector
2. Commercial sector
1. Residential sector
Year 2009 found a huge popularity of affordable housing projects which are under 20 lakh. Due to the financial crisis which started in 2008, large EMIs for premium flats became a real nightmare. Now people are interested only in renting/buying affordable apartments. Now house owners of premium or luxury flats are forced to offer at low rental/selling prices. This really make investment in luxury floats to be a unwise move for new investors.
Also the above situations really help to get lot of discounts. Lets hope the demand for affordable flats will keep on increasing for few more years atleast till the economy is in a booming phase. So its advisable to invest in affordable flats / apartments.
2. Commercial sector
Even though the rental returns from commercial property is higher, the supply is currently more than the demand. This situation is likely to be continue in 2011. Hence always think twice before going for commercial properties under this situation unless its available for much lower price than the market value.
But for those investors with a long term investment plans can definitely consider investment in commercial sectors. Long term investors can get the benefit of capital appreciation as well as rental income cash flow.
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