Real Estate Is Still The Most Important Investment Vehicle
By Evente Clinic
When done correctly, real estate is one of the most popular and profitable investments with a lot of potential for success. Real estate investing offers many advantages, and investors can enjoy a steady income flow that may lead to financial freedom.
With the introduction of new policies by the government, easing up of home loan regulations and the availability of affordable homes, real estate investments have become accessible to almost everyone.
Stock market versus Real estate – In real estate, the risk of loss is minimized by the length of time you hold on to your property. When the market improves, so does the value of your home, and as a result, you build equity. The risk never changes in the stock market and there are numerous factors beyond your control that can negatively impact your investment.
“Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy” – Marshall Field
Gold versus Real estate – Gold has traditionally been one of the most preferred investments for many Indians, however, that is slowly beginning to change. Today, real estate has several advantages over gold. One of the most significant benefits is that investing in real estate doesn’t require you to pay 100% of the total value upfront.
Tangible asset value – There will always be value in your land and value in your home. Other investments can leave you with little to no tangible asset value such as a stock which can dip to zero, or a new car which decreases in value over time. You can always sell your property when you own one. Unlike a stock, real estate never becomes worth nothing, even if the value drops.
Only positive growth – The land is limited and the world population is increasing with time. The demand is only going to grow. Result? The price of land will only increase. Over a long period of time, the real estate investment returns will only be positive.
It is for all – Real estate suits every need and budget. If you have a limited budget you can invest in land only. Even the price of houses/flats is such that a middle-class worker, as well as high-income businessmen, can invest.
Tax Benefits – Owning a property offers you a tax rebate. You can enjoy a deduction of up to Rs 1,50,000 from taxable income in a financial year as payment towards housing loan. However, an enhanced deduction of up to Rs 2 lakh per annum for a self-occupied property can be availed of if acquisition or construction of the property is completed within three years from the end of the year in which the loan is taken.
The bottom line is real estate investment has many benefits and is a great source of passive income. Because there is a large demand for properties, the value of real estate usually appreciates, increasing your potential for profit.
Do you have any other reasons why one should invest in the real estate? Share with us.