Market research reports at times drive conclusions aimed to influence the decisions of the consumers and target markets. This time around, the news buzz is the onset of the recession, while other analysts are debating the global economic developments as a short-term disturbance. Irrespective of the scenario, one cannot ignore any influence of prevailing conditions on wealth.
It is always preached to manage a distributed portfolio across the investment classes. For the wealthy, with more weightage of investments into equity investments or other equivalent classes of investments, it is time to reassess the portfolio balance. In general, with the rising inflation, the stress on growth-oriented stocks is much higher and could have limited performance.
In an assessment of other investment classes, some reports highlight the scope of reduction in housing investment values going down in 2022 -2023 due to the slowdown in investments, while other reports highlight the inventory going down in real-estate investments due to supply issues and recession impact, which leads to the dilemma on choosing the real-estate as an effective investment class too. However, there are some common conclusions among the real-estate market reports on how there can be increasing demand for build-to-rent properties that can accommodate small families and transpire into a profiteering opportunity for good returns and wealth creation.
Irrespective of the reports and their viewpoints, one non-deniable fact is how hard assets like real estate investments in any form have compounded the investment value over a period, and sustainable growth is imperative in the process. Adapting the BATNA (Best Alternative to A Negotiated Agreement) practices in investment, for the current scenario, the real estate asset class investments like investing in private properties, or investments into funds managing real estate investments can be a promising alternative when invested in the right proportion of the portfolio.
Altering the weightage across the investment classes periodically and according to trends is a pragmatic approach to having a balanced approach to reap optimal returns from investments. For decades, Real Assets or Hard Assets, wherein more specifically real-estate investments have been a profound investment class.
Real-estate investments are given such a weightage as it works as a hedge for any economic cycle disruptions, grow consistently in terms of valuation, and can be a more secured set of investment.
Bottom Fishing is a profound tactic used by smart investors across the investment classes. Given the economic climate prevalent at this time, is it time to invest in hard assets like real-estate projects in better value proposition leading to wealth creation and compounding growth?
Any kind of real estate investment in the current scenario can be appropriate bottom fishing and can lead to potential wealth creation.
33 Holdings has a team of industry professionals who come with a rich experience of the real estate market. Our tech driven processes, investment and acquisition acumen helps us build a diverse asset portfolio which endures multiple economic cycles while returning consistent, risk-free returns for our investors.