Currently, the demand for affordable housing has gone up significantly. Also, the high-rise premium housing projects are costly says Maxwell Drever. There isn’t any scope of any cost increase in the days to come. It means you might not get a great return in case you decide to invest in the premium projects. There are risks associated in such projects happening in well-developed sectors.
On the other hand, Maxwell Drever says that affordable housing projects provide you a better investment choice. The risk is low as the cost for these projects will go up in future. Also, discussed below are a couple of reasons that will enable you to decide to invest in the low-cost workforce housing segment.
Speedy and high appreciation
The reasonably priced segment projects are situated in the city outskirts, which are presently not in a developed stage. For this, you will get the properties at a reasonable rate. The development taking place in the principal city is at its peak. However, today the focus got shift to the outskirts of the city. Such areas are getting the momentum and the infrastructure are also enhancing fast. There are several scopes for buyers and developers to invest in this segment and obtain an increased return in the future.
A buyer ongoingly estimates the risks prior to making any investment. Even though there is a considerable risk associate when it comes to share market investments, such is not the situation for a low-cost housing project. Such affordable projects have reduced risk as the property cost is less. Hence, you can anticipate good returns on the project. There are chances of a fixed monthly rental earning.
Lavish projects market saturation
The lavish premium project costs have gone to its peak. Also, there is no other scope left. The gap between lavish premium and affordable projects is very high for which the buyers are moving to a more low-cost segment. The popular developers have begun investing in the affordable workforce housing segment because there are great scopes.
Increased resale value
Since, the affordable workforce housing projects are made available at a low price, the resale value of this won’t be high. Some people want to invest in the resale properties due to the low-budget. The high demand for affordable housing segment has increased demand for the resale property.
Property investment is the best wealth-increasing choice that will make sure there is a favorable return. However, in the low-cost housing property, it’s possible to maximize the profit by reselling a property at an increased price. It’s possible to rent the property for earning a daily income flow.
According to Maxwell Drever, you might be planning to make a property investment with increased returns but don’t wish to opt-in for an increased risk due to the fluctuations in the real estate domain. If that is true, the low-cost workforce housing project will prove to be an ideal investment choice for attaining the best earning. If you or anyone you know is in two minds about investing in affordable workforce housing, the reasons mentioned above can help to arrive at an informed decision.