Various types of investment options are readily available for you to choose from. If you are a seasoned investor, you would know and if you are new to investment then you should know that each and every venture involves some risk. Talking about this, have you ever given thought to invest in real estate?
No/Yes.?
Well investing in real estate is said to be one of the safest & smartest investment options (globally). There are people who have spread this rumor or they themselves fear to invest that this is not a “Safe investment choice” and it requires a huge amount of money, none of it is correct and just to make sure that you are satisfied — we will give you some of the best reasons as to why investing into real estate is a good decision.
Owing a property in India is considered to be a “great deal”; this comes with a lot of emotional contentment and the instincts are quite strong. Having a property (land/ apartment) is real evidence of the asset and its concrete worth.
Below pointers will give you a fair idea as to why investing in real estate is the safest option to secure your hard-earned money. Benefits of real estate investment
1. Safe compared to investing in stocks
The real estate market is more dependable and viable as compared to the always uncertain stock market. If you are a professional and one who can analyze stocks very easily, then you win in this market and make money, or else trading here is a risky affair. But then again, real estate is physical proof that you own a property — no cat and mouse race.
Investing in stocks can make you lose your money due to its uncertainty, but that’s not the case in real estate — if the documents are proper and authentic, you are all set for investment and it comes with an assurance that you will get a higher value of the amount invested and if not than you will receive the actual value (capital). In the stock market, there are various factors that impact the whole investment — interest rates, changes in government policy, fluctuations in the market, and many others, but real estate is more established and real.
2. Steady cash flow
If you own a real estate property and you think of renting it out. You will receive a said amount every month as rent. In commercial units, people even have gaming zones for extra monetary benefits. The deposit earned from a rental property is invested in another assignment for a particular duration, which again helps get extra money and it is rolled the same way again.
3. Tax-Free — Property valuation
The property that you invest your money into eventually increases from its original cost. And there are no taxes applicable on this profit of yours. You earn extra and when you wish to sell and invest again in another property, this extra amount comes in handy
4. Low Tax deduction
Devaluation is an element that can be submitted for income tax aim but isn’t really an overhead
Devaluation is an element that can be submitted aiming at income tax but this not being an overhead expenditure, won’t hit you financially. Investors have been using their devalued property to lower the tax amount.
5. Total expense & Income from rent
After a period of giving your property on rent, there is usually a raise in the rent amount. Even in case you have taken a loan and paying EMIs for the same, eventually, this amount helps you pay it off quickly and create a good profit margin.
6. Real Estate Investment drawbacks
Not everything goes as planned; investing in real estate at times can be a bit tricky as well. We will now check some pointers which you can consider while investing in a property.
7. Initial profit hurdle
The initial phase of renting out a property might or might not give you the monthly profit to ease down the load. People who’ve invested by paying a hefty down payment will have to wait till the recovery is done from the rent amount.
8. Smaller leaps
Do not look at what others have achieved and do not expect that your profits will be on the higher side like other investors.
9. Tax effects
Always remember that the government is closely watching on every bit of profit that you make, you might end up paying for the extras that you’ve earned
10. Staggering income
Do not see your investment as an operating cloud kitchen where very less amount is needed to start your business. You might or might not see a substantial percentage hike on the investment made.
11. High business cost
Your plan to Invest in a business and sell it at a higher value in the future might shake a little. Irrespective of the increase in the actual property value, once you crack the deal you might see that there is no definite profit as the business cost would flatten most of your proceeds
Investing in real estate in India can be lucrative and the potential buyer has to study the market thoroughly before investing — just to be a little safe. Investors can make a small down payment and the rest they can pay at ease. Once a property is put on rent, investors can add this amount to the loan which will help them greatly. At a later stage, this property can be sold off for a higher value and reinvested in another one.
Originally published at http://realestateandepc.wordpress.com on September 28, 2022.
No comments:
Post a Comment