Real estate investment is not a domain for the wealthy anymore. Today, if you have a steady income and a good credit score. You can finance the investment from the Bank easily. With the right plan and research, you can also reap the benefits of real estate has to offer.
The benefits of real estate are several. In this guide, you’ll get to know the reasons why real estate is a good investment.
One of the main reasons to invest in a house or a commercial property is the ability to turn into regular income by renting it out. Cashflow is the takeaway income after the property mortgage and other expenses on it. You can increase the cash flow by renting the property. In this way, you monetize the property in ways more than one i.e. you don’t have to rely only on the appreciation factor of the property.
Tax exemptions and deductions-
In India, you get many tax benefits from investing in real estate. Real Estate investors can take advantage of various tax exemptions and deductions. Consult your tax advisor so that you get a clear picture of all the tax benefits you can get in India.
Generally, real estate value tends to increase over time. Rents also tend to increase over time, which in return increases the cash flow. Above that, you can force an appreciation on real estate property by making renovations and repairs.
Investing in real estate is a win-win situation. As many of us would know one of the best practices of investment is to diversify the portfolio. Real estate provides a great opportunity to diversify your portfolio with a higher return on investment.
When you invest in real estate, you get a tangible asset. The value may increase or decrease. But keeping it long enough, you will be able to get your initial investment plus profits. Many believe real estate is a safe investment. It is less volatile in comparison to the stock market and you can get out of it in time to salvage your investment.
Real Estate Investment Trusts-
You can buy or resell REIT on major stock exchanges. It is a great way to diversify your portfolio with minimal risk. Plus, it is easier because you don’t have to worry about managing your property.
Gain equity and wealth-
Once you paid your mortgage against your real estate, you have built equity. A tangible asset that is added to your net worth. Above that, you can leverage the real estate investment to further buy more property. Hence, you get more cash flow and gain more wealth.
The real estate sector offers many ways to do investment. You can flip the property after renovations. You can rent it out. You can invest in REIT. You can invest in any option you feel like.
With real estate, you built more equity as time passes. It is a great way to diversify your portfolio. It also offset the volatility of high-risk investments such as the stock market.
Mohali is growing at a rapid rate. With a regular influx of the latest commercial and residential projects coming up, which are equipped with the latest amenities. It is home to many leading IT sector companies. Therefore, Mohali provides great opportunities to invest in real estate with high returns on investment.