There is truth in the fact that the importance of land has remained same from time immemorial. Brothers fought brothers and kingdoms collapsed in this battle for land, and yet, we forget to learn from history and continue vying for what’s available. The prima facie fact that real estate never loses value or demand, makes it a great investment option, offering better returns than traditional investment ideas. There are a variety of reasons that make real estate investment so advantageous.
- It provides great returns: Risk is a very important factor when we talk about good returns and that is minimised when real estate is held for a lengthy period of time. However, in other options like the stock market, the risk factor never goes away.
- Better asset value: With increases and decreases in the market, there can be no value left in other investments, but your real estate investment will always offer tangible asset value. Home owner’s insurance also protects such investment.
- Tax Benefits: One can get deductions in tax on various things such as mortgage interest, operating expenses and costs, cash flow from other investments and so on. It is always beneficial to contact a firm that deals in real estate to get more information on this, subject to the area where you want to invest. Accounts of rental repairs, utilities, maintenance etc should be maintained to make this job easier.
- Steady passive income: Other than renting a property, profits can be generated by buying, selling and the ability to build equity on the property. It ensures that you get a passive income on the side, apart from your primary income.
- It provides a hedge against inflation: With increase in inflation, prices of rent can also be increased with time. However, such a benefit is not necessarily offered with stocks or other investment options.
- You will be the decision maker: Investing in real estate makes one their own boss and therefore, risk management is easier since the control is in the hand of the investment maker. Other factors will affect and cause changes in your investment, however, since you are the one calling the shots, the risk can be much better calculated.
Other than this, real estate investment in India is a very good early or regular retirement plan. If a person is well researched and knows the basics of how to invest, your property can ensure a steady income all through your years of rest from work. A few things should be kept in mind while doing the same:
- One should be patient in choosing the property and the agent, to ensure that one doesn’t pay too much for a property and that the returns are as per your expectations and dreams.
- Only a property with clear titles should be bought, otherwise, it will only lead to a series of court visits thereafter.
- The price of the property should be checked properly with the local government records. A good real estate firm will easily do this for you.
- Investment in real estate is never risk-free. However, it is a calculated risk that will offer great returns to you, unlike other investment options.
- Negotiate your way through the process, for it will save you a lot of additional money and expenses.