Diwali is a Perfect Time to Buy a Second Home
Investments in real estate are done keeping the long haul in mind and with the purpose of fetching a higher rate of returns than other instruments. Diwali is the festival of lights and is one of the most prominent festivals for Hindu. The festivities last five days and during this time, people exchange gifts and pray for the wellbeing of all. This time frame is also considered auspicious. Most people buy gold, silver or utensils in this period. People also consider investing in the stock market during this period. Hence even on the day of Diwali, the stock market opens for a short time, which is referred to as mahurat time.
Here are some reasons why this is also considered a great time to invest in real estate:
Most people believe Diwali to be the time for a new beginning. A new home can also symbolise the same thing. It is a complete change in the scenario and a big step in life.
The time from Dhanteras to Diwali is considered to be very auspicious and full of positive energy. People invest in various instruments during this time and believe that Lakshmi, the Goddess of wealth will help in multiplying the wealth and investments done during this golden period. It has been observed that in the long term, investors can expect returns to the tune of 15–20% compounded annually. It is not possible to get returns of this stature from any other asset or instrument. Further, investing in a holiday home can enable people to earn a fixed monthly income as rent along with the above-mentioned appreciation.
Given the positive sentiment in the market, the real estate companies also offer new projects. They try and lure the buyers with interesting projects and attractive discounts and schemes.
Low rate of interestLow rate of interest
The rate of interest on home loans is at a historic low. This is prompting many people to move from rented accommodation to a house of their own. The low rate of interest and income tax exceptions are also prompting people to consider a .
A lot of salaried people get bonuses around Diwali. This surplus is either used to make any big-ticket purchases or to invest in instruments that will fetch good returns. For ages, real estate is considered a good option for investment purposes and a lot of people are open to exploring projects that they feel will fit their requirements.
Overall, Diwali is a great time to take a plunge in real estate. If you already have a roof over your head, it is a good opportunity to invest in a second home that will not only help in earning rental income but provide handsome appreciation over a period of time.