Is real estate a good investment option?

Gone are the days when people depended solely on their salary to create wealth for their secured future. Nowadays things are different- people no longer stick to the conventional ways that are earned from a single job and save a monthly amount out of it. With unrestricted and rapid industrialization the real estate domain has emerged as a hub for people who aspire to invest and expect a substantial return from the same. Therefore, it would be safe to say that there is a surfeit of money in this sector, and has numerous ways to find success.

 

Real estate can be highly profitable if you have a clear idea about what you are dealing with and what you want from the investment you are making. Real estate investment is all about the right timing- meaning, the timing of its purchase and sales matter the most. Invest in one when the market prices are low and show a great future growth prospect. You can sell it when the market prices will rise, enabling you to enjoy high returns on your investment. On the other hand, considering real estate for investment may be time-consuming as it requires thorough research to make the right choice, followed by all the legal work to complete the process. It is exposed to market risks, but holds it till the market price rise, thereby generating high returns. To sum it all up, you have to wait for the right market condition.

 

Find out more about how real estate is considered a profitable investment option:

1. Appreciation of Property:- The most common way to make money in real estate is through appreciation when a property grows in value. You might purchase a property rupees 1cr, and over the course of 10 years, it appreciates to a value of 1.5 cr. Sell the property and you will have profited 50,000 lakh. Most property tends to appreciate and that’s why real estate is such a popular industry for investors.

 

2. Sheild against inflation:- Investing in real estate and using leverage is an excellent way to protect against future inflation. If housing costs rise as prices rise, owning an asset that rises with the tide is a simple way to hedge against market unknowns. The appreciation of your property rates will counteract the effects of inflation for you. Real estate is usually seen as an inflation hedge.

 

3. High potential for growth:- Since more and more international companies are making their way to India, India is increasingly exposed to global ventures. There is expected to be a surge in the number of jobs in the country. With the influx of money, more and more people are likely to purchase homes and increase the demand for estate. And this straight means that investors can avail tremendous capital gain.

 

4. High return of Investment:- As has already been discussed in the point above, returns on investment in real estate surpass the inflation rate, offering you real profits.

 

5. Tax savings:- Home loans contribute to tax savings. If you are a first-time homebuyer you can save up to rupees 1.5 lac on the principle amount under section 80C, and up to rupees 2 lac on the interest payable under section 24. That can make your investment affordable.

To sum it up, real estate is a domain that initially may require capital however, it will shower favorable returns in the future. If there is that one thing you should keep in mind is how this domain works and proper knowledge of this market. 

 

In addition to that, there are numerous websites you can visit to know the past transactions of the property you are thinking of investing in as these have been considered the best sites for property search