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| Stock Markets vs. Real Estate Investment |
By:
Rajinder Dogra |
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Indian Real Estate: An Investment in the Future
Rising gold prices and the highs and lows of the Indian stock
markets has changed the perception of upper and middle-class
Indians vis-à-vis their investment value. Increasingly, the
middle class is looking favourably on investing in a second
home. A new trend that is responsible for altering investment
opportunities and adding buoyancy to the Indian real estate
market.
The ability to buy a second home is being viewed as a measure of
job confidence, an increase in salaries and growth in income. As
larger homes become affordable due to dual incomes and salary
increases, low interest home loans, more and more people are
buying first or second homes, houses that are not only bigger
but in a more upscale area. While moving into the second home,
first homes are being retained as rental property or a form of
immovable though safe and reliable investment. India's economic
boom has given the middle-class job confidence and a confidence
in the ability to pay off first house loans while going in for a
second loan. In a smart move, rental income from first homes is
being used to pay off the estimated monthly instalments (EMI) on
the second home, an asset without a tax liability.
As India performs well on the economic scale, and salaries
double at a rapid pace, increasingly, people are buying second
homes to get away from the mundane routine of their lives.
People are busy snapping up real estate deals in Mahabaleshwar,
Haridwar, Dehra Dun, Vrindavan, Rishikesh, Khandala and Lonavala
for second or leisure homes. Hitherto, an unheard of possibility
for middle-class Indians, a sure sign that India is fast
emerging out of the economic poverty that colonial rule brought
the country.
And, as multinationals, NRIs set up base in India, they find
real estate and rental properties come at a relatively cheaper
price in India than abroad. This has caused a slew of foreign
developers to enter the Indian real estate market looking for a
share in the profits. A burgeoning population, the break down of
the joint family system, a strident demand for additional
housing will further fuel the surge in real estate sale prices.
For those who are listening, Indian or NRI, it makes good sense
to invest in a second home while the bank loan interest rates
are low and property prices in India still have a sustainable
shock value.
This article is sponsored by: www.indiarealestateblog
.com
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