Pandemic has affected everyone across the globe adversely. But, can we stop financial planning for the future? No. Systematic, disciplined planning helps you improve your personal finances. Many businesses and companies resorted
to retrenchment of employees on a large scale. The world economy shrank along with the household income of the breadwinners.
People have to avoid petty expenses to get a grip on the budget. But investing in different opportunities to improve personal finance will make you financially strong.
Tips to improve your personal finances:
- Revamp your financial habits. Spend for needs than for wants – Spend mindfully.
- Provide a cushion to your savings by checking out new profitable investment opportunities. It is no secret that the share market is in rambles at present. It will rebound and start fetching a high income in the future. Taking into account the present situation investing in real estate would be a brilliant idea.
- Debt consolidation to reduce the debt burden would be a brilliant idea.
- Maintaian an emergency fund.
Investing in real estate during the pandemic:
Real estate investment appears to be an attractive investment due to the increased Government rules to curb the industry. And the sector is safe for small investments that aim to improve your personal finances. This sector has seen rapid development during the past decade. Let us hope it continues to maintain the trend in the coming future also.
There is an increased demand for commercial and residential buildings these days due to the migration of people. Furthermore, the concept of co-ed office space and co-living has given momentum to the real estate sector. The mass vaccination drive has instilled new hope for the Indians and a dream of owning a homestead soon.
Furthermore, a strong point in favor of investing in the real estate sector is that you can reap profits from residential and commercial buildings. It is a matter of change in the strategic approach for investment that matters. A real estate investor can let out the building for rent or even resell it at a high cost to make a profit.
Reasons for investing in real estate:
- Growing demand: The main reason for the need for homesteads, along, the growing population, is migration. When people from small villages or cities migrate to bigger cities, searching for employment, the demand for residential buildings is on the rise. The requirement for residential buildings pulled the need up for the past two decades, and this trend will continue till 2025. Furthermore, competition will weed out defaulters and smaller players from the real estate market, further increasing the price and rent of the buildings.
- Understand the purpose before investing: People who buy houses either buy to live or resell for a higher price. If you are an end-user, look out for a building with amenities and good home interiors, and if you want to resell to earn a quick profit, lookout for a cheaper one.
- Increasing home price: Swelling home prices discourages a lot of people from buying a home. It, in turn, has turned out to be a blessing in disguise for already homeowners. They can divide their apartment and rent out to multiple people as the concept of co-owning is gaining popularity in metropolitan cities.
- Positive impacts of real estate reforms act 2017: The Real estate market is one of the biggest contributors to the GDP. It contributed nearly 12000 crores during 2019. The government of India introduced many progressive reforms like Housing for all 2022, Model Tenacy Act to regulate the sector.
- Risk-directly proportional to return: When you buy a house in a hot locality, the surging rent prices will turn out to be in your favor. In big metro cities, this rule has always proved to be correct. Many investors who invested in real estate have reaped huge profits from the amount invested. Similarly, if you invest in small cities, you invest a lesser amount. But the returns you get in the form of rent will be high compared to the investment.
Final say: As investors, we should develop a catalyst mind to understand the intricacies of the working of the real estate market. It has not only been resilient over the past two decades but gained momentum even during the pandemic.
Recent research of global construction research throws light that by 2025 real estate sector will make phenomenal development. The infrastructure connectivity is improving along with the continuous rise in the standard of living of the Indian people. Investing in real estate will fetch you an astronomical advantage to improve your personal finances in the present situation.