Real Estate Investment-Safe and Reliable Option
Real estate is the safest investment option
There are different types of investment plans available in the market. Every investment plan has some risks. But have you ever thought of investing in real estate? Yes, you heard it right. Real estate is one of the safest investment options globally. Many people avoid real estate investments because they think they need a Safe Investment Option a lot of money to invest. Neither is accurate and to reassure you, here are some of the great reasons why real estate is a good investment. In India, the emotional satisfaction of owning your property is inherently very strong. Owning a plot, home or apartment is the physical proof of the investment and its tangible value.
In the post below we will see why real estate investment is the safe investment option and the real estate in India.
Risk-free Compared to Stocks
The stock market is always uncertain. Unlike stocks, real estate is more reliable and sustainable. Trading in stocks is quite risky. Only if you are an expert at it and if you can analyze the market well, then you can make money out of stocks. But real estate is the physical property you own. There is no hide and seek. If the property documents are correct, you are good to go. In stocks sometimes you may lose the money you had invested.
But in real estate, there is nothing as such. At least, you will get the investment amount. Unlike stocks and bonds which are affected by multiple external factors such as market fluctuations, interest rates, inflation, government policy, and regulation, real estate offers a more stable and tangible asset. Now you get my point I guess. In real estate investment, you can be sure of the capital amount you have invested.
Safest Investment Option Globally
Real estate is one of the safest investment options globally. In India, it is the second-largest employer after agriculture and is expected to grow over the next decade. Real estate in India is going to the next level as people’s approach to real estate as an investment is changing.
So regardless of the temporary setbacks, it is one of the safest investment options.
Best Investment for Return in Long term
From investing in real estate, many people have earned crores of rupees. If invested properly it is one of the best investments in the long term. As the world’s population is growing day by day, people always seek for a piece of land. So the demand will continue to grow – and returns from real estate will continue to yield great returns in the long term. If you are planning for real estate investment, do it today. What are you waiting for?
Like any other business owner, real estate investors can easily wave off some tax by showing the
- The interest paid on the loan
- Down payment paid on the loan
- Maintenance expenses
- Real estate taxes
In general, you can deduct the reasonable costs of owning, operating, and managing a property.
Real estate investment is one of the safe investment options because of the financial leverage. The solid benefit of owning a property is that you can use it as leverage in big-ticket transactions. Not only can property owners raise loans by putting their existing unit as a mortgage but also buy more properties even if they are unable to pay cash upfront at the time.
It is one of the appreciation Investment
Whether it is the house, plot or commercial property, it always tends to add value over time. It can never depreciate. On average, the property value increases by 3% to 5% every year. Real estate values tend to increase over time, and with a good investment, you can turn a profit when it’s time to sell. Rents also tend to rise over time, which can lead to higher cash flow. If you believe in real estate as an investment you can always do it.
Steady and Regular Income
Some of them may still doubt real estate as an investment. But always remember, you can make steady and regular cash flow by investing in real estate. This increases the whole value of the property other than appreciation. It may seem quite tiring to buy investment real estate and find quality tenants and manage the property, but there are many available resources to help you.
Real estate investment or real estate investment trust can also be called financial security. You cannot blindly trust the stock market and invest in it. But when you invest in real estate, you know you have an appreciating asset. It may go through a rollercoaster ride while losing some value along the way, but the market usually bounces back if you hold onto it long enough. Some people feel more secure knowing their money is invested in a safe investment.
Well, these are some of the solid reasons to say that real estate is an investment.
Now let us see some of the ways to invest in real estate.
Invest In Rental Properties
To begin with, your real estate is an investment, buy a rental property. Buy a property, renovate it and rent it out. It ensures regular income. According to the RICS-Knight Frank Report, about 30% of people live in rented houses. However, unlike any other investment, it has some risks too. Sometimes owning a rental property may become a cause of headache when the tenants start damaging property. It can be a tedious task to manage some tenants and ensure timely rental payments.
It is one of the best real estate investment options. Hold on, this requires a lot of market analysis. If you have experience in real estate marketing, valuation, and renovation, you can do house flipping. You need to understand and do repairs when needed. This offers a quick return but requires a deep knowledge of the market.
Real Estate Investment Groups
If you are willing to invest in real estate and don’t want to bother about running the business, you can opt for r Real Estate Investment Groups or REIG. It is similar to mutual fund investment. The company either builds or buys a set of apartment blocks and then lets investors purchase them.
Here the company becomes a medium of purchase, and the investor becomes a part of the group. You can own one or two units, without worrying about the maintenance.
Real Estate Investment Trusts (REIT)
A real estate investment trust or REIT is for those wanting exposure rather than a real estate transaction. The real estate investment trust utilizes investor’s money in purchasing and operating income properties. You just need to invest some money, without bothering about buying or managing the property. The payment is dividend-based.
Online Real Estate Platforms
Online real estate platforms are in great demand. In this, the investment is made via online platforms that are also called real estate crowdfunding. I am not saying that it doesn’t require any capital, but the capital amount is quite less compared to purchasing the properties directly. Furthermore, this option offers geographical diversification, and a person can invest in single or many projects.
Real Estate as investment, especially in India may seem intimidating for someone new to the market. However, with the help of the right set of people and guidance, real estate investment attracts a lot of financial gains. If you are planning to invest in real estate in India, plan with us, to make your dream come true.
Read about- What is the difference between primary market and secondary market in real estate
Making profit out of real estate
FAQ’s on Real Estate Investment
- What are the types of risk-free real estate investments?
Investing in Real Estate.
2. Which is the safest investment option globally?
Investing in Real Estate.
3. Does Real estate provide steady and regular income?
Yes. Real estate is one of the best steady sources of regular income.
Last Updated on January 17, 2022 by Maansa Parameswaran