Top 5 Investment Tips for the Elite in Chennai

The following article is a brief explanation of some of the significant investment tips that an elite should be mindful of before making a real estate investment in Chennai. You might end up taking a wrong decision if you are not aware of the pros and cons of real estate investment.

The macroeconomics trends have given a very positive boost to the luxury real estate market in India. The demand has gone up by a good percentage in the current years and builders are busy stationing villas and independent houses that are exquisite and affordable at the same time. There are contributing factors such as higher income levels, dynamic demographics, excellent loan options and growing aspirations of people that have led to the consumption of villas. Amongst all the Indian cities, Chennai is one city that has seen a major rise in the consumption of independent villas and houses. The realtors are sensing a rising demand for luxury segment and thus are concentrating steadily on areas, such as Poes Garden, Boat Club and Nungambakkam, to name a few. These places have been experiencing a high demand of villas and independent houses. The builders in conjugation with the state government have actually taken a pledge to elevate the standards of various localities making the state of Chennai.
At this point, even for the people who have loaded bank accounts need to have few investment tips in their hand so that they too can rotate money, effectively.

1. Analyze the Economy of the City

Economy plays a major role in illustrating the upscale housing market and the consumption of homes and villas. People belonging to the high income group are more susceptible to lay-offs and expulsions. Therefore, the economy has to be in a good condition so that the industrial sectors remain healthy. The employment status of an individual is highly dependent on the economy and its on-going stature at the very moment.
Moreover, the economy of the city can also help business people to make decisions that are related to their new ventures or investments or any other associated activity.

2. The Regions and Their Anatomy

Chennai is a diverse state and is better known for its temples and historical significance. The builders have not harnessed the regions thoroughly and therefore, the elite must take note of every region, explained specifically. Regions like GST road and Old Mahabalipuram Road areas have IT corridors and other industries and thus the residential colonies here are popular and plush. Then on another side, there are localities that are not much developed but owing to their proximity to bigger cities tend to attract a huge populace. This is expected to increase the number of people who might want to start a new business or invest into lands or independent houses. Being elite, the investor can have a look at these cities and the associated benefits as well.

3. Understand Risk Tolerance

It doesn't matter if the investor is rich, middle class or any other income group; analyzing risk tolerance can be fruitful and beneficial, both. The wealthy group or the professionals who have high purchasing power, before nailing the desired villa in Chennai should very well consider their end goals so that appropriate investment planning can be done. The money should be rotated in such a way that at the end of the deal, the savings look decent and ready to address any uncalled exigency.

There is another entity associated here and that is the emotional aspect of the risk tolerance factor. Emotions are more powerful than logic and can enable the investors to put a YES on a particular decision without regard for their financial ability. The two emotions that can be the most devastating to investors are fear and liveliness, and both can be triggered through the irrational behavior of an unreceptive crowd. Moreover, emotions can also affect the decision making on the basis of some event and may also help investors keep a tab on a long term strategy.

4. Watch the Taxes

The more the income, the higher are the chances of heavy investments and thus more exemptions. This is a thumb rule that should be considered by the investor at all times. Investment into asset making can incur huge amount and the government has a series of taxes applicable, such as estate tax. Moreover, if the investor is applying for some sort of loans then also taxes have to be considered as this will ensure a healthy savings account at the end of the day. The tax efficiency should be measured by one and all.

The investors should also have an idea of Fixed Deposits and schemes associated so that the elite in Chennai can have access to small investors for the ventures, big or small. Chennai is a place that has a good mix of big and small regions that have plenty of opportunities for expansion for the elite.

5. Take Advantage of Negative Gearing

The Chennai realty market is flooded with luxury homes and beautifully designed villas. In such scenarios, the high income earners in the city may get attracted towards buying one and adorning their real estate portfolio. The investor can take advantage of the concept of negative gearing. The idea says that a well-chosen investment property leads to surged rental returns over a period of time. This changes the property from negatively geared to neutrally geared, and finally to positively geared. The person incurring the money will be able to recover any losses that come in from rental increases or reduced tax payments.
The Chennai real estate market is smooth and goes with the flow. Therefore, the investor can actually have an easy time putting in money into upscale housing market. Moreover, the strategies typically direct towards raising the standards of the localities that make up the developing or the targeted areas of Chennai.

Visit: 99acres Chennai Listing


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