As more women are emerging as financially independent in India, their share in investments is growing at a rapid pace. While gold has historically been the favourite asset for investment, real estate is fast catching the interest of the present-day women. Here are some handy tips for women eyeing investment in real estate -
Women constitute nearly half of the population in India and the work force has been increasing over the decades. With women occupying roles in almost all the industries, their needs and aspiration to save throw light on the importance of investing in the right avenues to earn better returns. While saving money in a bank account ensures safety, it does not guarantee appreciation or interest. The present-day woman is looking out for substantial opportunities to build wealth for the family.
While gold was one of the most sought-after investment options, the trend differs today with plenty of other options as well. These include mutual funds, bonds and even real estate investments. As Indians, it is habitual to start investing and saving early. However, women are culturally taught to invest in deposit schemes and gold ornaments which are either volatile or fetch them meagre returns. Typically, investing in gold is viewed as a woman’s job and investing in a home is viewed as a man’s job. However, there has been a gradual shift in this attitude of late and there has been a significant increase in the number of women homebuyers.
Real estate is a burgeoning industry which offers great returns for the investors. Mostly viewed as a priority item in everyone’s checklist, housing is indeed one of the crucial investment goals for many in the country. Here are some of the important thumb rules to keep in mind while investing in real estate.
Start small: Between managing work and home, finding time to learn about the choice of investments can be a tough decision to make. However, taking baby steps is crucial in managing your wealth. Start by making financial wellness a conscious priority. Take out time to read more about money, the real estate industry, and localities that are in demand. Ask questions while visiting sites and interact with real estate agents to know more about the area.
Investing in land: Women prioritise family over others, no doubt. They see money in terms of what it can do for their families and invest in avenues that benefit them. Real estate investments can create passive income and help build wealth for your family. While investing in an apartment might seem overwhelming to start with, consider investing in a piece of land which will require a small pool of money from your savings.
Set goals: It is important to set investment goals with timelines, as it helps to drive and motivate you. By identifying why to invest in land, apartment, second home and more, you also learn about the investment options that are available in the market.
Understand ROI: Understanding Return on Investment (ROI) for various investment options is the key to good investment decisions. Considering the case of gold investments or gold bond, the interest rates are meagre and converting these into cash takes a long time. However, in real estate, conversion of the property into money can happen easily. Ten years from now, the demand and rate for real estate will increase and will yield higher ROI in the years to come.
Time value: With time, the value of gold and property changes. But, the value of the property will always be more at the time of sales, whereas, the same is not applicable in the case of gold. The value of property can be increased through repairs and renovations. Unlike gold, the property dimensions can be altered to suit your needs. You can always lease out your property and earn a good income whereas, gold cannot be leased out.