Real Estate is one option that offers a maximum guarantee of a high return on investment among all the available investment options. Covid pandemic changed the entire investment situation in India and even worldwide. Safe investment choices are questionable these days due to low returns on investment. Stock market investments have become questionable due to the volatility in the market. Mutual Fund investments have doubts too. But investing in real estate is the safest. It doesn’t require any special skill. It is not only safer, but it also gives good returns in the long run along with providing a solid roof for you and your future generations.
WHY REAL ESTATE IS THE SAFEST INVESTMENT OPTION IN INDIA?
Constant Rental Income:
Owning a home assures you a regular monthly income from rental. It is one of the biggest benefits of real estate. You can easily put your property on rent. This increases with time also along with the capital value of the property. This is the safest way of investment compared to stocks.
Real Estate Yields Huge Returns in the Long Run:
Compared to any other industry, the chances of people yielding maximum return on investment is from real estate. The supply of land is limited compared to the ever-growing population. So there will always be a demand for land and returns from real estate will continue to yield huge returns in the long term.
Real Estate is Almost Risk-Free:
Real estate investment is almost risk-free as compared to investment in the stock market. Stocks present a mixture of uncertainty. Trading in stocks and derivatives is indeed a risky game. You need to be skilled enough to make money out of equities and stocks. Real estate investment doesn’t require special skills. Good research work and foresightedness can yield big returns.
Real Estate Yields Tax Exemptions and Deductions:
People always look for options where they can save money on their taxes while filing their income tax returns. Real estate investment is one such option that can help people take advantage of multiple tax exemptions. One can deduct the reasonable costs of owning, operating and managing a property. People save tax on housing loans. A homebuyer can save tax on repayment of home loan principal as well as interest amount. For joint home loan applications, each applicant can claim a deduction as per the available limit. As per Income Tax Act, an applicant can claim deduction up to Rs 1.5 Lakh under Section 80 C on principal repayment and up to Rs 2 Lakh under Section 24.
The foresight of RERA:
RERA establishes a state authority that will govern both residential and commercial real estate transactions. RERA will ensure timely delivery of the project which is a big sigh of relief to home buyers. In case of a default, developers will have to pay interest to the buyers. RERA protects the interests of home buyers. The real estate transparency index in India increased. RERA will guarantee transparency between the developers and buyers more than ever now.
The urbanisation of the Demography:
The country is witnessing rapid urbanisation. Real estate is growing exponentially irrespective of the demography. Several industries like education, healthcare, warehouses, garments, etc have shown the need for more space. Commercial real estate has shown great demand for quality, design and space utilisation. It is more beneficial to have similar brands, both large and small businesses, be available in dedicated areas and in close vicinity.
Lifestyle influencing Real Estate:
Lifestyle habits influence real estate in India largely. Its impact has been most significant in residential spaces. In today’s world, nuclear families are increasing more and that leads to community living. Thus a need for residential complexes in large quantities is noticed. With the ongoing covid pandemic and work-from-home culture, there is a need for own stable space which came out as a need of the hour benefitting the real estate scenario in India.
Effect of Suburbs in Real Estate:
Suburbs are growing exponentially due to healthy living, an active lifestyle and a space crunch noticed in cities. The real estate in suburbs is more affordable due to the availability of larger spaces and homes there. More and more work is being done connecting suburbs with industrial hubs in cities. Transportation routes are being built to increase connectivity benefitting the real estate industry.
Real estate is considered a sound investment, and investors can enjoy a passive income, good returns, tax advantages, diversification and the opportunity to build wealth. Just like other types of investments, real estate investing can also be risky. But you can limit your risks by conducting thorough research on the real estate market in India.