Why You Should Invest in Real Estate, in Six Reasons

As implied by the term, real estate is "real." It offers a sense of stability, safety, and security and is a physical asset. Owning a property is frequently a sign of a person's financial stability. In the past few years, we have realized the importance of owning a home that protects us from unanticipated events and offers a secure haven for loved ones. Homes that provide superior living conditions with the amenities and infrastructure to ensure holistic well-being are in greater demand. There are many advantages to investing in real estate. Let's examine them in greater detail:

Enhanced life, security, and safety

Owning a home gives one a sense of stability since it makes one feel safe and secure. Real estate is one of the most well-liked investment possibilities in India in part because of this. A house allows a family not only the freedom to do whatever they want but also privacy and protection. It guarantees a better life for family members, one where their physical and emotional needs are addressed. Home has become the center of our existence since the COVID-19 pandemic. It made people realize how important it is to live in their own house in an integrated community that offers top-notch amenities, open spaces, lifestyle & leisure facilities, basic conveniences, and excellent service to improve quality of life.

A lifetime investment

Real estate's value continues to rise throughout time. It is a lifelong tangible asset that can be used as collateral for a mortgage, for living expenses, or even for rent. In addition, unlike the stock market, real estate is durable and immune to swings. Residential real estate has long been regarded as an asset that can create wealth. The prices will rise even more as a result of factors like a limited supply of land, a growing population, and migration to urban regions.

Tax advantages

In India, real estate has numerous tax advantages that apply to both privately owned homes and rental properties. You may deduct taxes from the principal, interest, and, in the case of rental property, local government taxes that make up the loan amount.

One of the most secure bets you can make

Especially for novice investors, real estate investment is one of the safest forms of investment. It has no risk and has little association with other important assets. It is a physical asset that is not impacted by market fluctuations. The Institute for New Economic Thinking (INET) funded a study by Jordà-Schularick-Taylor Macrohistory Database that concluded that residential real estate is a superior long-term investment than stock.

Stream of Income

In terms of rental revenue, real estate is another source of passive income. One of the best sources of income is thought to be rental revenue. This fixed income can be utilized to cover costs, settle EMIs, etc. without the need for additional effort. The Model Tenancy Act, once adopted by the cabinet, will bring about the much-needed openness and structure in the rental market, as well as prompt the settlement of disputes. This will encourage investors even more. Additionally, statistics indicate that the gap between the country's rental return and the interest rates offered by banks on FDs is gradually closing, making real estate a profitable choice.

Diversity of holdings

Real estate investments can increase your portfolio by lowering volatility through diversification and producing rental income. It supports the development of a risk management plan. Real estate can therefore serve as a hedge and a means of portfolio diversification if you have investments in several asset classes.

Written by Lodha's Central