There is truth in the fact that the importance of real estate investment has remained same from time immemorial. The primary fact that real estate never loses value or demand makes it a prominent investment option, giving better returns than traditional investment plans.
There are a variety of causes that make real estate investment so advantageous.
It provides great returns: Risk is a very significant factor when we talk about good returns, and that is minimized when real estate NRI is held for a lengthy period of time. However, in other alternatives like the stock market, the risk factor never goes away.
Better asset value: With rises and decreases in the real estate market, there can be no value left in other investments, though your real estate investment will always provide tangible asset value. Property owner’s insurance also protects such investment.
Tax Benefits: One can get deductions in tax on several things such as operating expenses and costs, mortgage interest, cash flow from other investments and so on. It is always effective to contact a law firm that deals in real estate to get more relevant information on this, subject to the area where you want to invest. Accounts of rental repairs, utilities, maintenance etc. should be maintained to make this job easier.
Steady passive income: Other than renting a property in India, profits can be generated by selling, buying and the ability to build equity on the property. It ensures that you get a passive income on the side, apart from your primary income.
It provides a hedge against inflation: With the increase in inflation, prices of rent can also be extended with time. However, such a benefit is not surely offered with stocks or other investment options.
You will be the decision maker: Investing in real estate for India makes one their own boss, and therefore, risk management is easier since the control is in the hand of the investment made. Other factors will affect and make changes in your investment.
Additionally, real estate investment in India is a very genuine early or regular retirement policy. If a person is well studied and knows the fundamentals of how to invest, your property and land can ensure a steady income all by your years of rest from work. A few things ought to be kept in mind while doing the same:
- One should be patient in choosing the real estate property and the agent, to assure that one doesn’t spend too much for a property and that the returns are according to your expectations and dreams.
- Only property with clear title deeds should be bought. Otherwise, it will just lead to a series of court visits after that.
- The cost of the property should be checked accurately with the local government records. A good property law firm will easily do this for you.
- Investment in land and property is never risk-free. However, it is a calculated risk that will offer excellent returns to you, unlike additional investment options.
- Hire a property lawyer for the whole process; it will save you a lot of additional money and expenses.