In these unprecedented times, savings and investments have become indispensable. Thus, it has become necessary to understand investment options thoroughly and then invest in the right direction.
First and foremost, many options are available to create, enhance and diversify one’s investment portfolio. One of the best options is real estate investment, and it is usually for the long-term with higher returns. This article will further tell you the advantages of investing in a property.
Property Investment – A Brief
Property investment is considered the most profitable investment if done correctly with the required knowledge, experience and expertise. According to a recent research report, 76% of Indians consider real estate investment the best option, as it easily helps grow your wealth.
Top Reasons To Invest In Real Estate Properties
Real Estate Investments are perhaps one of the best options when it comes to investing in an asset whose value is more than one has to invest. Let’s understand this with the help of an example. Let’s say you invest just 10% of the asset’s value and own it. Later on, down the years, as you pay the mortgage value, you will get high returns on your investment, not only through paying the mortgage but also via the natural appreciation of real estate experiences.
Safest Investment Option
Real estate investment is much safer than other investment options like the stock market, cryptocurrencies, gold, mutual funds, and banks. As the stock market keeps fluctuating, gold prices can help offset the market fluctuations, but storage and theft issues still exist. Whereas cryptocurrency is a new market ship, it is unknown to many. When talking about banks, interest rates on the savings account are usually low compared to ever-rising inflation. On the other hand, the real estate investment industry has been proliferating over the years, mainly due to the implementation of RERA (Real Estate Regulatory Authority). So, you can easily block your surplus funds in real estate investment. So, in this case, there are rare chances of theft, and they are less affected by fluctuations.
Investments in real estate properties will help you fetch high returns on investment as these returns surpass the current inflation rate and offer real, lucrative profits. The process of investing in real estate is also smoothly lined up with legal procedures and minimises the chances of fraud and scams.
Benefit of Tax
Home loans highly contribute to tax savings. As a first-time homebuyer, you can literally save up to ₹1.5 lakh on the principal amount under section 80C and up to ₹ 2 lakhs under section 24. These tax advantages can help you reduce your investment cost and thereby make it more affordable.
Investing in real estate properties positively impacts your investment portfolio. In some situations, real estate negatively correlates with other groups of key assets, which in turn can lower the portfolio volatility and increase the return per unit risk.
Many genuine real estate investment consultants can help you invest in the right property according to your budget. Stead Realty is one of the leading real estate investment consultants that provides personalised strategic advice and takes calculated risks to solve the problem of clients with a holistic approach.