1359508Fear of missing out on a good deal sometimes drives people to invest in real estate. However, these are often unwise decisions, not backed by proper thought and planning.

But, investors who have done their homework well, and who have been observing the real estate industry for a while know something that newbie investors don’t.

Affordable properties make better investments than high end properties. Yes, that’s right.

As an investor, if want to ensure that you get good returns, read on to discover why investing in lower priced properties could be the best investment decision you’ve ever made.

1. Faster appreciation

Properties that cost less are known to appreciate relatively faster and after all, this is what every investor wants. It’s a win-win situation, compounded by the fact that most properties are on the fast developing outskirts of the cities. Here, larger properties are available at a much less investment. With the development of the Metro and Ring Roads, these properties are also becoming more accessible. They become more attractive to prospective buyers or renters, making them hot properties.

2. Easier to rent

Lower priced properties often have good rental prospects because of their affordability. Most often, these properties come up in areas which are self sufficient especially when it comes to amenities. Combined with lower rents, they are attractive to prospective renters. Even if the rent is marginally low, you can be assured that there will be someone willing to rent your property, ensuring a constant cash flow.

3. Lower Risk

Every investor’s biggest concern is the risk factor. It is unfortunately present in whatever they choose to invest. But unlike stocks and other such investment options, affordable properties come with a lower capital risk. With a smaller outlay, you are still assured of getting returns. Or sometimes there is just a good cash flow in the form of rent. It makes complete sense for even the most cautious of investors.

4. Easier to exit with a profit

If you decide to resell, there are definitely more buyers for an affordable property than for a higher end property, simply because of the lower price range. The probability of getting a better resale price is also very high. So for an investor, an affordable property is surely a better option than higher priced ones.

5. Good return on capital

There are not many investment options that can give you a good return on capital. But with an affordable property, you can either rent it out or ensure a regular cash flow, or you can resell the property and get your money back, with profit to boot.

6. Saturation in High End Market

The high end market with luxury apartments have come to a point where no one is buying them anymore. Several branded builders are also rushing into the affordable property market because they are keen to cater to mid level buyers. Today, with the saturation in the high end market, it definitely makes more sense to opt for a lower and affordable property when considering an investment.

Key Takeaway

Investing in a property is not easy because you’re constantly barraged with advice from well meaning people.Also, it’s easy to start second guessing yourself. If you feel that you need to invest but are also concerned about the risks involved, investing in an affordable property is your best bet.

Nimmy Joseph is a marketing specialist and has a deep knowledge on the online consumer behavior. Over the course of her career she has interacted with many home buyers, noted their grievance and gained actionable insights. Her strong communication skills helps her to connect with the consumers faster & create a comfort zone for them.

Nimmy holds a MBA in marketing and Post graduate diploma in corporate communication and Advertising and is currently working with Vakil Housing in their Marketing Department.

Attention Home Buyers

The Critical Checklist Every First Home Buyer Must Have!

 

FREE: Use this critical checklist designed for First Home buyers,

which will tell you everything you need to do, for a stress free

and hassle free home buy.