This year’s reasons to invest in real estate: In today’s world, real estate may be the most viable investment option. The idea of having a place to live and stay is still very relevant. Because a home is the absolute minimum requirement for leading a high-quality family life, it is a top priority for spending.
Every modern buyer desires homes close to their workplace and other social and cultural infrastructure. If you own property in popular and well-oiled infrastructure-growing realty corridors, investing in real estate almost certainly guarantees a plausible customer engagement.
Five good reasons to invest in real estate are as follows: –
- Valuable source of passive income
In the current economic realities of steep commodity price rises and inflation, a single job is not enough to make ends meet. It only manages to keep you from drowning. In the form of rental housing, real estate assets can be utilized as an excellent source of capital revenue.
In the real estate markets of satellite cities as well as Tier 1 and Tier 2 cities, rental housing has emerged as one of the growth drivers. People have fled back to their workplaces as a result of the return-to-work-from-office system, most of whom are salaried workers.
They are unable to afford to purchase a home, but they can certainly invest a portion of their income in monthly rentals. In the face of rapid inflation and rises in interest rates, housing rental costs have skyrocketed since the Covid effects subsided. In times of financial difficulties, real estate investment can be a potential lifeline and a deterrent to a crisis.
When the appreciation of real estate properties rises at higher rates and yields enormous returns on investments, investors are more likely to invest more money in difficult times. One can make a good investment in real estate by first figuring out the percentage of taxes and costs for upkeep, and then deciding how to price the property.
According to hBits founder Shiv Parekh, real estate has proven to be an appealing investment option for generating wealth and ensuring a steady income.
According to a Reserve Bank of India report, 77% of Indian households invest in real estate as an asset creation strategy. High returns on investment, high growth potential, and income security are just a few of the many advantages of this asset class.
“Real estate is one of the most profitable investment options for consumers, whether they are young millennials, middle-aged consumers, or seniors. Shiv stated, “It is a great option for investments across demographics and geographies.”
- Ever-increasing appreciation value
The location of a property and the connectivity of its infrastructure play a major role in enhancing its appreciation potential over time. This indicates that if a property owner chooses to invest his surplus money in a real estate hotspot, he is most likely to earn significantly more, by significant margins, annually. Experts claim that the value of real estate properties rises annually by 6-8%.
Dr. Renu Singh, President of Sales and Marketing at Spaze Group, echoed this sentiment, stating, “A sense of well-guided personal realty investment policy can make property holders significantly wealthy.” Real estate is a resource that is a tangible asset and will never lose its value over time. Owning real estate is a sustainable way to build wealth that can also protect future generations.
- Benefits and Sops from Taxes
During times of property depreciation, real estate investors can take advantage of tax breaks from costs associated with maintenance and repairs. Investors looking to make long-term real estate investments benefit from lower tax rates than in other industries.
“A prior, deep-rooted, and extensive understanding of tax policy for realty investors is critically important,” stated Rajesh K. Saraf, MD, of Axiom Landbase. It enables them to make prudent decisions regarding property investments and makes them less prone to fraud.
In the event of unforeseen circumstances, tax remissions and rebates encourage a variety of players to participate in the real estate market and bring many investors to the forefront because they believe they are protected from any kind of economic downturn. During the period of property devaluation, sops and tax benefits serve as mitigaters.
- Tangibility increases the value of real estate
The tangibility of a real estate asset greatly enhances its equity and value. The land is not just viewed as a distant or immovable asset in India. Landownership is highly prized because it is considered a means of subsistence. The sociocultural beliefs have been held for a long time and are widely respected.
It is the safest economic venture, is simple to own and sell, has a high capitalization value, and has the potential to rise in value for future generations. As a result, real estate investments are relatively risk-free and can be invested in a variety of revenue-generating avenues.
“For millions of Indians, real estate has been an attractive investment option for generating wealth and securing a stable income,” stated Shiv Parekh, founder of hBits. According to a Reserve Bank of India report, 77% of Indian households invest in real estate as an asset creation strategy.
“A commercial property has a higher rental yield than a residential property, at around 9% per year. Therefore, a fractional ownership investment of Rs. 25 lakh has the potential to generate rental income of Rs. 2.25 lakh annually,” he added.
- Beats Inflation
The property value continues to rise despite inflation that is crippling. In the face of inflation, property prices are likely to rise, which is why real estate investors always look for good rentals and returns on their investments.
“Real estate has always retained its timeless and flamboyant character as an investment-friendly zone, which has still not lost its vigor even in the midst of competition from various investment channels,” stated Amit Modi, President of Credai Western UP and Director of County Group. The fulfillment of the primary capital, which is land, is required for any kind of business planning or functionality.
The scarcity of space and land has also contributed to an increase in the demand for real estate, and owners of properties and land are taking advantage of this widespread demand. In markets where low supply and rising demand are at odds, driving up the prices of existing property lands, real estate will always be the most popular investment class.
