understanding-need-of-investment

There are various benefits attached to investing in real estate. Well researched investments allow investors to garner a formulaic cash flow, profitable returns, tax advantages, and diversification—and it’s quite common to leverage real estate to multiply wealth. Following is a list of benefits that make real estate a great investment.
● Real estate investors use rental income, appreciation, and profits that are derived via various business opportunities that depend on the property.
● The gains of investing in landholdings include residual income, steady cash flow, tax benefits, diversification, and the advantage of leverage.
● Real estate investment trusts (REITs) describe a process to invest in real estate without owning, operating, or financing properties.

Cash flow

Cash flow is that net income which is generated from a real estate investment after mortgage amount and operating charges have been deducted. In most scenarios, cash flow becomes steadier with time as one pays the mortgage—and builds up equity.

Tax breaks and deductions

Real estate investors can save money at the time of tax deductions by researching about the various tax breaks and deductions. Mainly, one can deduct the rational costs of owning, operating, and managing a asset. And since the cost of buying and upgrading an investment asset might depreciate over its useful life (27.5 years for residential properties; 39 years for commercial), you gain from years of deductions that aid in lowering your taxed income. Another tax perk: you may be able to defer capital gains by using a 1031 exchange.

Build Equity and Wealth

As one pays down a property mortgage, he/she builds equity—a resource that’s part of the net worth And as equity build up, one has the advantage to buy more properties and expand the cash flow and wealth exponentially.

Portfolio Diversification

An undeniable edge you get by investing in real estate is its diversification possibility. Real estate has a low—sometimes even negative—correlation with the various main asset classes. Simply speaking the inclusion of real estate to a portfolio of diversified resources can bring down portfolio volatility and provide an elevated return per unit of risk.

Real Estate Leverage

Leverage means the usage of different financial instruments or borrowed funds (e.g., debt) to multiply an investment’s potential return. Example, a 20% down payment on a mortgage, gets you 100% of the space you want to buy—that’s leverage. As real estate is not only a tangible asset but one that can be used as collateral, financing is promptly available.

Competitive Risk-Adjusted Returns

Real estate returns are heterogeneous, depending on parameters like management, asset class, and locale. Still, many investors have the keenness to beat the average returns of the S&P 500—what most people imply when they say, “the market.”

Inflation Hedge

The inflation hedging ability of real estate originates from the positive relationship between GDP growth and the demand for real estate domain. As economies are on an expanding spree, the demand for real estate makes rents higher. This increase actually then translates into higher capital values. Therefore, real estate tends to maintain the buying power of capital by passing some of the inflationary pressure on to tenants and by incorporating some of the inflationary pressure in the form of capital appreciation.

Real Estate Investment Trusts (REITs)

If you wish to invest in realty, but are do not want to rush into owning and managing properties, you can look into real estate investment trust (REIT). You can purchase and sell publicly-traded REITs on prime stock exchanges. Many investors trade under high volume, which allows you to get into and out of a position quickly. REITs must pay out 90% of income to investors, hence they give higher dividends than many stocks.

Explaining Indirect Real Estate Investment

Indirect real estate investing has no direct ownership of asset or assets. Here, you invest in a pool along with others, and a management company owns and operates properties, or owns an index of mortgages

How Can Real Estate Hedge Inflation?

Interestingly, owning real estate can provide a cushion against inflation. As a first, property values may soar higher than the rate of inflation, causing capital gains. Secondly, rents on investment real estate can increase to keep pace with inflation. And finally, holdings financed with a fixed-rate loan will see the relative sum of the monthly mortgage sums fall over time.

Is Your Primary Residence also a Real Estate Investment?

More than often, one’s primary residence is not regarded as a real estate investment as the it is primarily used as one’s home. However, one can make profit from selling their house at a price higher than they bought it for. In such cases, one is required to pay taxes on such benefits.

The Bottom Line

Though investing in real estate is quite beneficial, there are some downsides too. One major disadvantage is the lack of liquidity (or the hassle of converting asset into cash and cash into asset). Unlike a stock or bond transaction, which is a matter of seconds, a real estate transaction might take months to materialize. Even if you hire a broker to help you with the details, it sometimes takes weeks in order to find the perfect counterparty.

The Bottom Line

Though investing in real estate is quite beneficial, there are some downsides too. One major disadvantage is the lack of liquidity (or the hassle of converting asset into cash and cash into asset). Unlike a stock or bond transaction, which is a matter of seconds, a real estate transaction might take months to materialize. Even if you hire a broker to help you with the details, it sometimes takes weeks in order to find the perfect counterparty. Still, real estate is a well-defined asset class that’s simple to comprehend and can aggravate the risk-and-return profile of an investor’s portfolio All by itself, real estate offers equity building, tax breaks, cash flow, hedge against inflation and competitive risk-adjusted returns. Realty is also a catalyst in enhancing a portfolio by cushioning volatility by means of diversification, by helping you invest in physical properties or REITs.

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Sharing appropriate Market Scenarios
Pune is one of the rapidly developing cities in the country thanks to the IT boom. Often termed as the largest cosmopolitan economy across India, it is placed at the eight place in the country. Pune is also known as an IT, Industrial hub and educational hotspot which is critical for propelling the economy of the city. The Ease of Living index 2020 released by the Ministry of Housing and Urban Affairs established Pune as the second easiest city to reside. The long-awaited growth in urban infrastructure got a major shot in the arm when Pune ranked amongst the top 100 cities in India’s smart cities drive. The forthcoming huge infrastructure projects like Ring Road, Metro, Airports will most probably be complete in the coming five years. A robust cosmopolitan culture and a thriving physical and social infrastructure have
Sharing appropriate Market Scenarios
Pune is one of the rapidly developing cities in the country thanks to the IT boom. Often termed as the largest cosmopolitan economy across India, it is placed at the eight place in the country. Pune is also known as an IT, Industrial hub and educational hotspot which is critical for propelling the economy of the city. The Ease of Living index 2020 released by the Ministry of Housing and Urban Affairs established Pune as the second easiest city to reside. The long-awaited growth in urban infrastructure got a major shot in the arm when Pune ranked amongst the top 100 cities in India’s smart cities drive. The forthcoming huge infrastructure projects like Ring Road, Metro, Airports will most probably be complete in the coming five years. A robust cosmopolitan culture and a thriving physical and social infrastructure have made Pune a sought-after destination. It comes as no surprise that almost 85% of India’s IT companies have headquarter in Pune.

made Pune a sought-after destination. It comes as no surprise that almost 85% of India’s IT companies have headquarter in Pune. Across the world, Covid 19 has negatively impacted the real estate business in a fearful manner. There was in fact a period when the entire market had come to standstill, similar to a bull charging at full speed and then halting unexpectedly in its tracks. Interestingly, experts claim that this is the time when there is a phenomenal opportunity for those keen to invest in real estate. In the present situation,property rates are have hit their real value and also the builders and developers are handing out multiple propositions to investors. Moreover, lesser mortgage rates and supportive government schemes in the state like reduction in stamp duty have delivered a much-needed respite in these desperate times.Considering all factors, this is the perfect time to invest in properties.

Right now, housing and commercial loans are at low rate owing to revised RBI Repo rate. The cost of real estate has hit the bottom range. After 2 to 3 as the property market starts correcting, there will be g to a decent price appreciation of the property and ROI of Residential and commercial holdings would grow approx. 12-14% and 18% to 20% respectively. Hence, it is always it’s always smart to take advantage of home loan and commercial loans.

Pune’s housing sector accounted for one fourth of institutional investments during 2015-2020. The sector had seen staggered growth in the past three years but saw mark-able recovery during 2020 owing to low mortgage rates, lesser stamp duty and attractive options from developers. Pune bore a
small pause in the investment area in 2020 due to the covid situation. Thankfully, the path to revival is expected to boost the investment flows in 2021. Investment sentiments escalated during the first quarter of 2021, but subsequent lock-down has caused short term pit stops.

Following is an insight for investors keen to explore the Pune Real Estate Market Space.

Leading Localities of Pune in 2022:

● Wakad
● Pimpri-Chinchwad
● Pimple Gurav
● Wadgaon Sheri
● Kothrud
● Baner
● Pimple Saudagar

Worst Performing Micro-Market in Pune in 2022

While some micro-markets in Pune saw tremendous growth and keenness from buyers, others witnessed a sharp fall in interest.These localities are –

● Hadapsar
● Hinjawadi
● Undri
● Kondhwa
● Nigdi

Localities that have Appreciated in Value in Pune

There was a slowdown in the Real estate market last year, yet there are a few locales in Pune that witnessed high demand and even appreciated. These localities are –

● Dhankawadi – prices increased by 16.19%
● Kothrud – prices increased by 15.90%
● Kharadi – prices increased by 15.74%
● Aundh – prices increased by 15.26%
● Kondhwa – prices increased by 10.78%

Worst Performing Micro-Market in Pune in 2022

While some micro-markets in Pune saw tremendous growth and keenness from buyers, others witnessed a sharp fall in interest.These localities are –

● Hadapsar
● Hinjawadi
● Undri
● Kondhwa
● Nigdi

Localities that have Appreciated in Value in Pune

There was a slowdown in the Real estate market last year, yet there are a few locales in Pune that witnessed high demand and even appreciated. These localities are –

● Dhankawadi – prices increased by 16.19%
● Kothrud – prices increased by 15.90%
● Kharadi – prices increased by 15.74%
● Aundh – prices increased by 15.26%
● Kondhwa – prices increased by 10.78%

Setting the Right Goal & Achieving Them
The realty sector is not a casement is not a repository that can be dismantled in a haphazard way.Setting up real estate targets is linked to the thought process of the realtor. Hence, it is imperative for the buyer to assess all aspects of his/her interest to set the most feasible real estate goals. Completing transactions is the primary focus of real estate agents. Nonetheless, it is not the correct intention. Real estate agents need to ponder and realize that before cashing in on that objective, it is vital to ascertain and focus on other real estate goals.

The Need for Real Estate Goals

Goals are crucial as they help us define a path in our lives. In addition, real estate goals have a variety of aspects associated with them. Here, we are going to elaborate and understand real estate goals and the required blue print to eventually realize these goals. Pragmatic real estate goals will help the home buyer in not only zeroing in on the targeted steps essential for the roaring success of business ideas, but they will also chalk out the desired method to conceptualize and realize both short-term and long-term goals.The set parameters should include an overview of what you plan to do and how you want to do it. To put it in a concise and crisp manner,the handy and descriptive real estate goals would help you out in this competitive market and initiate your journey towards accomplishing those goals and realizing your long-cherished dreams.

How to Set Real Estate Goals?

Everyone is a boss of their own lives and can thus set goals for themselves. However, the realty sector is a pretty volatile domain and certain factors when taken into account to are the right step and way to move forward. Here, we are going to guide you in picking the right goals and thus enabling you to have a clear head with the most practical goals in mind so that you can optimize your investment.
Knock on professionals ‘doors to set real estate goals

Whatever venture we plan, the inputs and knowledge of experts’ is felt. When you want to finalize your business goals, you can always turn to professionals in that domain to steer you in the desired direction. GRD Infra is a famed group that will guide and support you in realizing
your real estate goals. It can give you diverse opportunities to develop your real estate enterprise.

Assess your market
We say your market and not the entire market as a whole. If you’re thinking of targeting a working-class neighborhood, keeping pace with opulent and really expensive properties will not serve any purpose. Focus only on what your niche, target clientele. Through this method you will observe that you can find buyers for real estate sooner and it will be much easier to optimize your efforts. It will also teach you that every second of your involvement and effort in the real estate sector is pure gold.
Classify the Properties
When clients approach you, they will invariably have a typical property in mind for the locale, the cost and the features. As the client is coming with a typical mind set, you must foresee it and have your collection of properties well organized to be able to suggest them specific options that are vtailor made to cater to their needs. This will not only save you time, but it will also project impeccable client professionalism that they will surely appreciate. Also, customers do not usually have the bandwidth of free time, so suggesting transparent deals and potential real purchases will always be appreciated.
Capture the Properties Wanting maximize
selling assets, as much as possible, is every professional’s dream in the domain.However, getting more listings in real estate is not a matter of luck or chance, hence it is essential to focus a part of the efforts towards attracting them. Visit potential places, where there is a substantial volume of sales or promote and advertise so that potential clients who have at the back of their minds the thought of to selling their property are familiar with you. By following this tip, you will get a robust portfolio of properties across all the buyer profiles in the competitive market.
 Focus on Marketing
This is the mantra for all of those who aspire to succeed in real estate sales. Although there are varied verticals to cover, and diverse tasks to pay attention to, yours is to be the advertising face of those assets that you have in your portfolio. It is solely your job, and the primary one that should be focused upon even if it requires delegating other tasks of the business. Real estate marketing should be your foremost concern as you are fixing your real estate goals. As you can see, these steps are the guidelines that will enable you to set your goals clearly and smoothly. It is an easy way to make sure that you do not lose focus. Clarity of thought and following up on the thought process are a sure shot way of achieving success
Be clear about your objectives

In order to establish that our agency is progressing in the right direction, it is of great need to identify objectives that permit its measurement.Similarly,identifying the apt benchmarks for each target will be critical in outlining your progress.For example, if one of your requirements is to refine the online presence of your agency, you should pay undivided attention to factors such as:

  • Strike rate
  • Relevant traction in social networks
  • Bounce Rate
  • Incoming marketing links generated

Beforehand, the percentage of compensation that you are going to garner should be very clear. That is,even if the client is visiting for the first time, and also before he enquirers, you must clearly mention what your charges are for the real estate brokerage service.
Besides, this professional aptitude will hold you in good stead and also help you attain your goals.There is definitely no need to improvise in this regard, as this is where your benefits will come from and you will feel duly satisfied and rewarded for all your hard work.

A good idea to determine a time period
Obviously, determining a period of time to successfully attain our goals will be another key factor that each of our efficiently laid out objectives must fulfill.Establish a period in tandem with both the reference data / information and the state of affairs at your agency. One month? A quarter? A year? Determining a particular time frame will be of key importance so that all your employees are committed towards their work allocation and designated roles.
To sum up
We explained the necessity of laying down real estate goals. Also, we tried to touch up on some of the vital factors that you should keep in mind. In addition, some tips were offered to help you out in this competitive scenario.
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