Real Estate -Residential

The investment in residential real estate generates regular rental income and appreciation. All with ma oldest amount of risk as compared to equity investments.
The growth in residential real estate investments is due to individuals looking for a better urban housing needs and government housing initiatives.
You benefit of owning an asset, have diversification and even save on taxes (exemption benefits through housing loans & depreciation).

What We Like

• Approx return per year = 5 TO10%
• Years taken to double the investment = 9 TO 14 years

Concerns

• Difficult to sell property quickly in case of urgent money need.
• Returns depend on property, location and other infrastructure developments in nearby regions.
• High political involvement.
• A small change in government policy may make a big difference in the valuation of property.
• Low risk factor.

Commercial Real Estate

Commercial real estate provides rental income and capital appreciation. The higher appreciation is due to demand for office space and growth of corporate environment.
But the location, building quality, market space rent and the demand-supply plays a major factor in deciding returns.
A good investment in office and shop spaces not only fetches higher returns but also helps in the diversification of investment assets.