Real estate is the hottest industry in India today that is progressing by leaps and bounds. And inflation is hovering all over the world, not to forget the recent economic global slowdown. The common man needs to battle inflation by making wise investments for a future that promises expensive living and minimal savings.
Your investments must earn double-digit returns merely to ensure that your savings retain their value. Some of the best investment options are equities, fixed deposits, commodities, real estate, gold and precious metals. Several analysts are of the opinion that investing in real estate in India is strong bet against inflation. Property is a real asset that when financed with loan is even better as the principal component does not increase but its real value declines due to inflation.
Property experts believe that buyers and investors should take the advantage of the current low interest rates to buy real estate. This will ensure a long term investment that is sure to reap multifold benefits. Some fear that growing property prices may burst as a bubble but since Indian economy is intact and the GDP is expected to grow at 8.5%, inflationary pressures would drive up house costs in coming times.
There are three types of inflation-mild inflation, hyper inflation and deflation. India seems to be going through the phase of mild inflation where prices grow slowly, not more than 5% every year. This phase of inflation is associated with a low level of unemployment and generally occurs during the upswing phase of a trade cycle. Such inflation has beneficial effects on a developing economy as it is a sign of a buoyant economy or an expanding economy that implies generation of jobs, output and growth. Therefore, investments in Indian real estate are bound to reap huge benefits.
Your investments must earn double-digit returns merely to ensure that your savings retain their value. Some of the best investment options are equities, fixed deposits, commodities, real estate, gold and precious metals. Several analysts are of the opinion that investing in real estate in India is strong bet against inflation. Property is a real asset that when financed with loan is even better as the principal component does not increase but its real value declines due to inflation.
Property experts believe that buyers and investors should take the advantage of the current low interest rates to buy real estate. This will ensure a long term investment that is sure to reap multifold benefits. Some fear that growing property prices may burst as a bubble but since Indian economy is intact and the GDP is expected to grow at 8.5%, inflationary pressures would drive up house costs in coming times.
There are three types of inflation-mild inflation, hyper inflation and deflation. India seems to be going through the phase of mild inflation where prices grow slowly, not more than 5% every year. This phase of inflation is associated with a low level of unemployment and generally occurs during the upswing phase of a trade cycle. Such inflation has beneficial effects on a developing economy as it is a sign of a buoyant economy or an expanding economy that implies generation of jobs, output and growth. Therefore, investments in Indian real estate are bound to reap huge benefits.
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