Is Investing In An Apartment In Bangalore A Smart Idea?

You might have been regularly investing in the stock market and mutual funds for a long time now, but have you ever tried something different? No, we won't ask you to take a risk but suggest something more credible and profitable in the long run. Yes, we are talking about investing in real estate. And if you are a Bangalorean, this decision of yours can be life-changing, we bet!

Bengaluru’s affordable and luxurious properties have become an integral reason for people venturing into investing in real estate. And why wouldn't they? It is a safe, secure and financially feasible idea to buy an apartment for future or rent it to someone else. If you are wondering whether investing in an apartment in Bangalore is a smart idea or not, here are some reasons that will convince you.

Price correction for residential properties

Be it due to the COVID 19 pandemic or due to the introduction of RERA, GST, and Demonetization, the real estate sector has faced a setback. Prices have been corrected which makes it a good opportunity for investors and homebuyers to buy property at a relatively lesser price now.

Huge tax benefits

For buying an apartment, you will take up a home loan, and this will help you in a tax deduction. According to the 2019 budget in order, there is an extra rupees 1.50 lakh deduction on the home loan interest component, and hence, you can buy a house priced below 45 lakhs. It will help you obtain affordable properties in and around Bengaluru. Also, you can take advantage of the numerous tax breaks and deductions that can save money at tax time.

Cash flow

Did you know that the most important advantage of real estate investing is its ability to generate cash flow? With time, as you pay down your mortgage, cash flow only strengthens over time and builds up your equity.

No risk of capital erosion

When you buy property in a place like Bengaluru, you also build equity, an asset that's part of your net worth. Unlike other forms of investment that depend on the market highs & lows, the advantage with real estate is that there is little to no risk of capital erosion. Additionally, residential real estate is the best investment option during this pandemic largely due to lower risks attached.

Great diversified portfolio

Your investment portfolio becomes better when it is more diverse. Apart from stock markets and mutual funds, real estate is the best option to choose. As we know, this sector has comparatively a low and negative—correlation with other major asset classes. Thus, this provides a higher return per unit of risk.

Income from renting the apartment

If you want a steady flow of income, renting out a flat in Bengaluru is one of the most notable options to choose. Some bachelors and families come here for jobs and look for flats in the city suburbs. Places like Electronic city, Hosur Road and Bommasandra would be prominent places to invest in a property as they are affordable and have splendid connectivity with the rest of the town.

Lowest ever interest rates

With RBI slashing the repo rate, Interest rates are now headed downwards, thereby reducing EMIs and making home ownership increasingly affordable. Looking at the current market scenario, this is a once in a lifetime opportunity for home-buyers.

To conclude, real estate can enhance the risk-vs-return profile of an investor's portfolio, and buying a ready-to-move-in property would

1. Eliminate the risk of project delays

2. Ensure that buyers are completely aware and know exactly what they are buying

3. Eliminate uncertainty about space, view from apartment, configurations, quality of construction, available amenities and fixtures etc

4. Make it possible to start earning rental income soon after puchase

Gomati Iris in Bommasandra is a sought-after property by investors and first-time home buyers alike as it is affordably priced, has excellent construction quality, has good connectivity and provides all modern amenities for joyous living. It is also said that a ₹5000 Cr integrated biotech and life sciences park is being setup in the vicinity which would skyrocket the property prices in the near future.

So, wait no more and invest in Gomati Iris to benefit from property appreciation in the coming years!

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