Is Investing In Real Estate A Worthy Investment?

Real estate as an asset class has various facets and selecting the right avenue to invest is a key to money making. Let’s now have a look at the reasons as to why investing in real estate is indeed a worthy investment:

Offers stable returns

No other mode of investment has been as stable as real estate. Even in the times of recession, the property market has given positive returns and the prices have seen a marginal increase unlike other asset class. This is because of the acute shortage of home ownership in India, which is very low as compared to developed countries like US. The appetite for housing is much more as compared to rest of the world and the demand in India is second only to China. People have always made money in realty industry, be it by investing in land, plots, residential or commercial units and this trait is expected to continue in the coming decades. The returns offered by this sector have been second to none. Even the stock markets work in cycle and at times could erode all your investments; however, this is not the case with real estate sector. This is one asset class which will continue to grow and only the pace of its growth could vary from time to time, thus making it an investment option that offers most stable returns.

Returns are higher than most asset class

The real estate investments give higher returns compared to other modes of investments like fixed deposits, unit linked insurance policies, national saving certificates, employee provident fund, public provident fund, gold, etc. In fact, if you have invested in new projects in Gurgaon, Mumbai, Pune, Navi Mumbai, Thane, etc. over the last 10 years, you would have got returns up to 100 percent or even more. These kinds of returns are unmatched even to stock markets which have just crossed the highs of 2008.

Gives triple benefits in the form of capital appreciation, regular rental income and tax rebates

The benefit of real estate investments are immense and cannot be compared to any other asset class. This can be explained using a simple example like, if you have brought a new apartment from any of the new residential projects in Noida, Ahmedabad, Indore, Chennai or any other prominent city of India, you would get capital appreciation on your residential investment and regular rental incomes. This is not all, if you have bought an apartment for end use, you would get tax rebate of up to 1 lakh rupees on principal amount and up to 1.5 lakhs on interest paid each year. Investing in realty also guards you against inflation as you can increase the rent of your residential/commercial space based on the market rates and the operational cost you incur year on year.

Real estate investment is the most prudent investment not only with the goal of making money but also to safeguard your future. The only thing that you need to be careful before making the big investment decision is choosing the right medium through which you invest. The best way to invest is through a trusted, reliable and branded online real estate portal like Housing.com, so as to protect your investment and to guard against any unwanted legal issues.

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