Why & How Real Estate Has Become The Safest Investment Through The Years
The economy is seeing a drastic change globally, and this trend is no different in India as well. People are now more aware while picking their investment options. One such emerging and promising investment option is real estate as it has the minimum risk and maximum returns that real estate offers. To fight against inflation or become a diversifier, several investors invest their money into real estate.
Here are some key reasons why real estate is becoming the safest investment option through the years:
- Offers regular income: Any investment in real estate ensures steady income, from owning a house to an apartment, piece of land or shop. Buying property is accessible, assured, stable and regular income in rent or lease compared to other investment options. You can raise the rent or lease percentage every year.
- Risk-free investment: Investing money in stocks or derivatives, or other forms of investments, brings substantial risk and uncertainty. On the other hand, investment in real estate is safe. Property investment for beginners is safe as it is non-volatile and does not get diluted by the market forces. Therefore, the investors prefer to invest more in real estate as it is the ”star” of the investor’s asset portfolio.
- The value increases over time: The thumb rule of investment in real estate is the longer you keep a property, the more you make money. The simple reason behind this thumb rule is that the property’s price appreciates with time. The real estate market has the potential to recover from any economic disturbances such as deflation or inflation. There is always a high expectation of real estate rate of interest (ROI).
- Appreciation: The significant advantage of investing in real estate is that you can force appreciation. Generally, the price of real estate appreciates itself every year by at least 3%-5%. You can understand the costs even more by renovating or repairing existing construction or constructing an investment property for sale.
- Provides a barrier against inflation: Inflation causes a lot of disruption in the investment market. However, investment in real estate activity is a barrier as when the prices increase; you can either put your property on rent or sell it off. As the property price appreciates, a more significant amount of rental generates. Appreciation in real estate funds can offer profits to the owner even in inflation.
- Offers tax benefits: A real estate is an investment option that provides tax benefits compared to other investment options. There is a special provision where you can claim the tax deductions under section 80c of the Income-tax Act.
- Investment is easy: Investing money in real estate is easy. The best real estate investments can be well-constructed apartments or a piece of land. One can easily buy a property with the help of a real estate agent. It is a simple, hassle-free and full of returns investment option.
Thereby, real estate is the safest and a long-term investment option that is customer-driven and does not affect any market disturbances.