All you need to know about affordable housing

The Finance Minister recently presented a budget that focuses on infrastructure and is geared toward growth. The government has reaffirmed its commitment to affordable housing by giving Rs 48,000 crore to the PM Awas Yojana, around the same amount that was spent last year. Since 2014, the government has been focusing on housing for all. Housing security is a basic requirement and integral to a country’s progress.

Many property investors include affordable housing in their portfolios because of the related government tax rebates, although affordable home investment can be both a business and an investment strategy. For investors, affordability is critical since it defines two critical factors: profitability and marketability. Subsidized housing programs assist low-income families in paying their rent by subsidizing a portion of the market rent.

Investors in affordable housing should research the median income in their area to see what kind of return they can expect when purchasing property for this purpose.

The goal of Affordable Housing

The goal of affordable housing is to provide accommodation for people in society who have limited financial resources. If a portion of a property is used for affordable housing, the owner receives a tax credit. The government also assists renters in paying their rent on a monthly basis. Typically, four kinds of individuals are in need of cheap housing.

Seniors and People with Disabilities

Studies show that people over the age of 65, as well as people with disabilities, require housing that is convenient to public transportation and has been renovated to help them with daily tasks. Ramps instead of steps, wheelchair-accessible restrooms, railings, and altered cupboards and closets are all examples of modifications.

The Military

Military personnel have a variety of housing alternatives both on and off base. Off-base housing needs additional site aid, bespoke building, and purchase finance, whereas on-base housing necessitates construction, property management, and grounds care.

Students

The need for off-campus accommodation has grown due to the rising number of adult and non-traditional college and university students. Private accommodation near the school is required for adult students with families. Because it is less expensive and more convenient than frequent overseas travel during vacations and summer breaks, international students want an accommodation that is accessible all year.

Re-entry and Rehabilitation Programs

Transitional housing is required for a segment of the population. Transitional housing is needed by the homeless, their families, recovering addicts, and individuals just released from jail facilities, for example. Group houses and neighborhood-based housing are required for some people and children in state protective services and mental health programs.

How to Invest

A landlord, an investor, and a business executive are all required skills for an affordable housing investor. Incorporate the human factor as a landlord. Remember that by assisting families and your community, you may generate a market. Create a blue-chip real estate portfolio as an investor. Have the greatest homes in the best locations, at the best pricing, with the highest returns.

Create a brand, establish goodwill, and enhance the market value of your brand as a company leader, not simply on individual units. Keep in mind that your efforts provide jobs and opportunities for construction workers and real estate salespeople. Your marketing and property management efforts contribute to the recruitment of workers in the areas where your units are situated.

Keep yourself up to date. Find out about affordable housing options around the country and in your neighborhood. Participate. Create a market for low-cost homes. Identify and fill a niche in your region. Form alliances with like-minded investors and sources of funding.

Become a successful investor. Work as a portfolio manager as well as a company manager. Make use of traditional investing and company strategy guidance.

(By Aman Trehan, Executive Director, Trehan Iris)

from | The Financial Express https://ift.tt/jHl8REa