REAL ESTATE INVESTING: ADVANTAGES

Looking for low-risk input with a significant reward as the output in the economy? If yes, then real estate investment is the cup of tea you should be holding. The financial world as of now is intimidating as well as intriguing, but with right judgement, real estate investing can be one of the most profitable endeavours one can engage in for the long haul. Investing in real estate has been proving this time and time again. Well, true, investment in real estate isn’t always an alluring one.

In this blog, I tried to highlight a few things to consider as a real estate investor.

Real Estate Investing: Is it Beneficial?

Real estate is much more beneficial than any other type of investment like gold buying, mutual funds or stocks. This is because, values of the property do not fluctuate in short-term basis, but in the long term, the value can either increase or decrease and it is easier to understand, unlike the other investing methods, where the investor has to have a prior knowledge of the complex trading world. For real estate, it requires looking into properties, either online or in person, with research, which can be done easily and it is inexpensive. You can influence the physical properties, by sub-dividing the property, developing or renovating the property to make it more profitable.

During this inflation period in the economy, putting money in property gives you a sense of financial security. To put in simple words, if invested properly return from real estate beats inflation by a great number. The sector has another advantage of providing you with a parallel source of income. In both short term as rental income and long term as capital appreciation. When things go south you can always count on the real estate as it is an asset one can always use.

Real Estate Tax Benefit

Let’s not forget about the tax benefits you can enjoy. The Indian government has announced that first-time house buyers will get a deduction of 50,000 rupees per annum. What are you beginners still doing here? Hey! Start looking for your first own house. Most importantly, it is not necessary that when you are investing in real estate that you have to use your hard-earned money. You may avail loan too. This is a safe and affordable approach. Even if you don’t want to shift you may give it out to rent. Consequently, your tenant would be paying your debt. Another advantage of using loans for buying the property is tax benefit. If the property is for self, then the individual is liable for deduction up to rupees two lakhs under section 24, in case it is for renting then the deduction is allowed up to interest payment.

To Sum up

Investing in Real Estate could be of little risk. However, it is a safe investment approach with high returns, if done carefully. It is important to learn to find good deals, evaluate the property you are interested in and then finalizing the deal.

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