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Real Estate Sri Lanka

Reasons Why Gen Z Can Invest in Real Estate Already – A Fascinating Change in the Market

by Pushpitha Wijesinghe December 24, 2022

While Gen Z may encompass those that are relatively young (generally between 18 to 25 years), more and more of them are investing in the real estate market that’s usually the domain of older or seasoned investors. Here are some insights into why this change is taking place.

Market Value img by Nick Youngson via Pix4free.org (CC BY-SA 3.0)

High Income & More Savings

In today’s world, the Gen Z set is enjoying the benefits of not only working in remote locations but also being employed by international companies that can pay relatively high salaries in US dollars; in some countries, the dollar conversion is extremely favourable too which increases the level of disposable income and savings that can be used for investing in real estate. Sri Lanka is an ideal example where young executives can invest in smart apartments from developers like John Keells Properties which are becoming increasingly popular.

Alternative Real Estate Investments

Gen Z is employing means of investing in real estate other than the more traditional methods. One example of this is called “house hacking” whereby a multifamily or single-family house is bought; while the owner sets aside one area as his / her living space, the other parts of the house are divided and rented out. The rent from the other occupants will usually cover a large portion of the monthly mortgage payment too.

Making Use of REITs

Real estate investment trusts or REITs are giving the Gen Z generation a chance to get involved in real estate without physically having to buy or manage a property. A REIT is basically a company which operates, owns, or finances real estate or related assets and one can look to invest in it and reap a share of the profits. Because they are publicly traded like stocks, REITs are highly liquid and easy to invest in as well.

Support from Parents

Interestingly, parental support can also be another reason that has enabled the Gen Z crowd to have opportunities for real estate investments. Quite a number of young people live with their parents (or relatives) even when employed; since food and lodging are covered, their savings are more and can be set aside for investing. Additionally, some parents will help their children by giving loans or making down payments for real estate (like an apartment) which no doubt plays a part in contributing to the trend discussed.

December 24, 2022 0 comment

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Why Real Estate Investment is Always a Good Idea – A Great Income if Done Right

by Caleb Falcon December 30, 2020

written by Caleb Falcon

Real estate is a great investment option which can generate a sustainable passive income. You can even use it as the foundation to build your wealth. Here’s more on this!

True, real estate is full of advantages. You can invest in a house or an apartment at a property built by real estate developers such as John Keells Properties. However, there are some things you should know to identify if you’re ready for it in the long run.

Img via Pxfuel

Real estate values increase with time

If you’re browsing through real estate Sri Lanka has to offer, focus more on Colombo and its suburbs where properties tend to appreciate a lot with time. A perch may cost around several million and the prices are ever-increasing – so, if you can invest in these regions with high demand, you’ll surely dig up a gold mine!

Real estate possesses tangible asset value

Unlike other investments of which the value can dip to zero (as with the case of stocks), real estate will always carry their value. It will only lose value in case of destruction so be sure to get the best insurance for your properties.

Real state investment can diversify your portfolio

If you know a thing or two about financial planning, you may realise the importance of diversification. Once you diversify your wealth, you spread out the risk, and real estate is a surefire way of mitigating the risk in your portfolio.

Real estate comes with various tax benefits

If you’ve invested in real estate, you can get tax breaks and deductions that will save money when it comes to paying taxes. You can deduct the costs of owning, maintaining, repairing, and general maintenance of your property.

December 30, 2020 0 comment

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Why it’s a Good Idea to Invest in Real Estate – A Rewarding Outcome Awaits

by Roland Lefevre November 4, 2020

written by Roland Lefevre

Looking to make an investment that will not only offer financial rewards but long-term stability and wealth creation too? Then investing in real estate is the way to go.

Shamli071, Colour Full Colombo, CC BY-SA 3.0

Property Appreciation
When making a real estate investment, especially in prime city locations, one can expect the property and land value to appreciate over time; this will also lead to higher levels of rental income too. For example, when it comes to real estate in Sri Lanka, investing in luxury apartments in commercial hubs like Colombo makes a sound choice.

Financial Security
You not only gain financial security through real estate investment but enjoy it in the long run too. As mentioned, the property value will keep appreciating while you receive a steady cash flow. However, when making such investments, you need to do so with reputed and stable companies such as John Keells Properties which you can trust.

Steady Passive Income
By making the right investment, you can also look forward to gaining passive income for life. The main way this occurs is through rental income which will be a fixed flow of cash; this will soon cover your initial cost and turn into a steady profit, which you can use to accumulate a significant “nest egg”.

Wealth Creation
Linked with passive income and profit generation is wealth creation; with strategic real estate investments, say city apartments, for example, you can expect increased wealth and equity. Since properties are tangible assets, you can also leverage them for financing other real estate investments too which will lead to greater wealth.

Wondering what the benefits of investing in real estate are? Apart from property appreciation, it offers long-term financial security, steady passive income and wealth creation.

November 4, 2020 0 comment