Saturday, 23 May 2015

Startups Investing in Real estate

Why Real Estate Investment is the Best Option for Start ups?

Real estate investment has been picking up for last few years. The prices have steadily gone up and are showing no hints of coming down. It is not only the regular citizens who are keen on investing in real estate in India, even the start-ups have begun to show interest in it. The continuous rise in price may cast you into the zone of doubt and quandary whether the bubble has grown to its limit and is about to be popped. Well, the real-estate gurus have something entirely different to say which might put your mind to peace. The real estate prices will continue to go up and it will remain as one of the most plausible investment options in the coming time. This fact is known very well to the smart owners of the start-up and hence they are turning a good part of their money to real-estate investment. 

The Prices Will Keep Going Up

One of the biggest reasons why the start ups are finding real estate investment as an opportunity is because the trends are showing that the prices will keep going up. Hence the real estate investment will prove to be beneficial in the coming years. The prices have been rising constantly especially in the residential real estate market. There is still enough discord between demand and supply and hence the prices will continue to show the upward trend. The real estate investment will place you in a good position even when the other types of investments will take a beating. The prices for residential properties with Mona Townships have also witnessed a continuous rise in the prices over the last few years. The state-of-art luxury apartments with Mona Townships make for a great investment option for the start-ups.

The returns in the real-estate investment are rather guaranteed. If you would look at the way the prices have gone up in the recent years, you can safely say that the profit margin of 10-15 percent is not an exaggeration. 

Easy Procurement of Funds

The way the major financial institutions of India are showing a keen interest in aiding the people buy their dream real-estate properties is a clear indication that it is a safe and profitable investment option. The loans and funds for the real-estate investment are available rather easily. This is one of the biggest reasons why the start-ups are getting more inclined towards this investment option. For a start-up, managing the finances and procuring the funds for daily operations as well as new investments is a huge challenge. However, most of the banks in India are more than willing to provide the loans to those who are interested in making an investment in real-estate. Instead of digging into their existing finances, which they could use at other places, the start up owners can go for the loans through the banks. Since the repayment is made in parts in the form of EMIs, managing the finances becomes a lot easier for them. Mona Townships has a tie-up with all the major banks. Their employees go out of the way to help the interested parties in getting the loans approved.

Real Estate Prices are Less Fickle than Stock Market

As a start up owner, if you are looking at the investment options, you will want to stick to an option whose price does not fluctuate rapidly with the changing market trends. Stock market prices are extremely volatile and even the slightest of the economical disturbance can upset the prices heavily. Even the stocks of the most reliable companies has witnessed steep fall in the recent past. If you would look at the statistics, you will notice that BSE Realty index and Sensex have seen a significant decline in last few years. On the other hand, the other asset classes such as real estate have continued to provide decent returns on investment. The experts say that real estate investment is safer than stock market owing to its mercurial temperament. When the stock market began to show signs of decline, the smart investors immediately began to shift their money towards more stable options such as real estate. And it has paid them off quite well. With real estate investment the money of the start up owners remains safe and guarantees good returns. Mona Townships has shown consistent increase in the prices since its inception making it as one of the best investment options for the start up owners.

The Demand & Supply Gap Will Keep the Prices Up

The real estate experts and analysts firmly believe that the large gap between the demand and supply in the commercial and residential real estate is bound to keep the prices from increasing for a very long time. NHB data has revealed that there is a shortage of more than 20 lac homes all over India at this time. Especially in and around the big cities, there is a huge shortage of residential properties owing to spike in population due to constant migration. The big cities have continued to provide better growth opportunities attracting people from the smaller cities. Mona Townships offer the luxurious flats with the modern amenities. Investing with them will be a wise move for the start up owners.

Exercise Caution before Investing

The experts believe that the real estate prices will not come down in the near future. The real estate prices have outdone bonds, currencies and equities by a sweeping margin and will continue to do so.  As long as the economy of India is treading on the growth curve, the property prices will remain on the constant rise. However, although the real-estate investment will remain as good option and the prices will not fluctuate, the start up owners should still be a little prudent before making the investment. After all it is their hard earned money. There are certain areas and properties which have not proven to be profitable. Carefully assessing the history of a particular property before making the investment is imperative for the start ups to ensure a profitable transaction. The start ups can confidently invest in properties like Mona Townships as they have proven themselves time and again with regular rise in prices.

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