Your search results

Why Real Estate is the Safest Investment Option

Posted by Sasi Kumar on January 17, 2022
0

Real Estate Investment-Safe and Reliable Option

Real estate is the safest investment option

Safest-Investment-OptionThere 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?

Tax Benefits

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
  • Depreciation
  • Real estate taxes

In general, you can deduct the reasonable costs of owning, operating, and managing a property.

Financial Leverage

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.

Financial security

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.

House Flipping

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.

Conclusion

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

  1. 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.

 

 

Leave a Reply

Your email address will not be published.

  • Experience World Class Service

  • Excellent
    Based on 170 reviews
    Ashwini Balakrishnan
    Ashwini Balakrishnan
    18. April, 2023.
    Mr. Balaji is our family acquaintance and is known to us for several years, he is also involved in philanthropic work, It is our good fortune that we entrusted the sale of our ancestral property to Mr. Balaji and his company. Mr. Balaji and his team of trusted lieutenants ensured the process right from selecting the buyer till completion of sale was completed without any hiccups and took care of all the paper work. Balaji and his team were willing to go the extra mile to ensure the sale was complete as per agreement. We would like to commend Balaji and team and hope we will have the opportunity to engage him again in the future. Wishing Balaji and team all success personally and professionally.
    Shubha Raghu
    Shubha Raghu
    18. April, 2023.
    We were introduced to Mr. Balaji by our sister sometime back for helping us sell our property. More than a broker he has been a good friend and guided us well through out the entire process. He has always been more than ready to help us. Our heartfelt thanks to him for a smooth journey in selling our property. I will definitely and strongly recommend his name to all my relatives and friends. Wishing him and his company success in all his future endeavours.
    LSPP LSPP
    LSPP LSPP
    7. March, 2023.
    BDA E-Auction great guidence from Narendra. Thank you for the service.
    Sandeep Yelburgi
    Sandeep Yelburgi
    3. March, 2023.
    In the world of real estate trust, credibility and professionalism doesn't exist. Mr Balaji and team are exception to this. They make buying/selling a property so easy. I could able to sell my property with ease. The process is so transparent from day 1 of meeting the buyer to the last day of selling my property. Thanks for service and keep the good work going in a honest way. Bangalore Real estate need more people like you.
    vikram solanki
    vikram solanki
    22. February, 2023.
    Govindraj Was Awesome To Deal With For a Smooth & Transparent Transaction.
    Chaya Rao
    Chaya Rao
    11. February, 2023.
    Excellent experience working with Mr. Balaji Badrinath who was amazing at his job. Made our real estate transaction smooth, convenient, excellent and top-notch. Balaji is an outstanding Realtor who is very professional, knowledgeable, experienced, efficient, direct, very responsive and has such a pleasing demeanor, is friendly, very prompt and never loses his composure. He helps trouble shoot timely with favorable solutions. He made my real estate transaction as a NRI easy and provided excellent guidance along the way. Bengaluru/India/this world needs more people like him to make it a better place! Thank you very much, Balaji, for all that you are and all that you do. You are truly an amazing human being and a professional! I am so glad that we found you online and you helped us close the deal on my parents’ house. Thank you! A special mention of Ms. Mala Malathi, Operations Manager, who I had the pleasure of meeting. She was very helpful in putting our paperwork together and helping me with some of the process. Thank you, Mala!
    Rekha Srinivasan
    Rekha Srinivasan
    11. February, 2023.
    I am very happy with the services provided by Mr. Balaji Badrinath, who helped me and my siblings on the the sale of our parents house. He was patient, polite, prompt and professional in all his responses! He was efficient in getting all the necessary paperwork and overall he helped make the sale a smooth transaction. I appreciate his professionalism!
    • Bangalore BDA Property Tax Construction industry Drones Home Loans Home Safety Tips Invest in Real Estate Metro in Bangalore New projects Online Rental agreement Own House Property Property Valuation Real Estate Registration Charge Rental agreement Rent House Residential Solar Panels Stamp Duty upcoming

    • Our Latest Listings

    Compare Listings

    Thank you for contacting us!

    Enter Your Information