Why Invest in Real Estate? 10 Facts You Need to Know!

Evolution of Real Estate Investment

Thirty years ago, investing in real estate was considered  a luxury. Today, with real estate becoming a leading profitable industry, middle-class individuals to wealthy investors are fearlessly investing in this sector.

Safe and Profitable Choice

Unlike stock markets and mutual funds, real estate offers guaranteed high returns without the risk of loss. Here are some facts that prove this reality.

Safe Investment

A house is the safest place for a person, and so is the investment in it. Unlike stock markets and commodities, where investments can rapidly grow or vanish, real estate investments have historically only appreciated over time.

Ample Financing Options

It’s easier to get financing for buying property than for purchasing other goods or starting a business. Banks and financial institutions compete to offer loans for real estate because these loans are often repaid successfully.

Low Interest Rates and Convenient Loans

Home loans in India are easier to obtain compared to other types of loans. While car or bike loans come with interest rates of around 14%, home loans are available at rates between 9.25% to 11%. Personal loans with 15% interest can be avoided by opting for low-interest home loans, thus improving financial stability.

Essential Need for Everyone

Food, clothing, and shelter are the three basic needs of a person. Buying a house or plot is a practical choice, and there are opportunities to purchase properties within one's budget. This can also provide a source of income.

Income from Rent

Buying a house with a loan and renting it out can help repay the loan with the rental income. After a few years, the house becomes a source of profit. Additionally, purchasing an old house at a lower price, renovating it, and then selling it at a higher value can also be profitable.

No Brokerage Hassles and Expenses

Investing in the stock market involves paying brokers for every transaction. However, in real estate, you only pay a one-time commission. Nowadays, many online platforms assist in buying properties without brokers, providing ample information.

No Penalty Fears

Credit card payments, personal loans, or EMI purchases require timely monthly payments, failing which hefty fines and stress are incurred. In real estate, this hassle is absent. Renting out the purchased property can cover the loan repayments without any pressure.

Growth Rate

Unlike other assets that depreciate over time, property value consistently increases. Renting out a purchased house can provide income, and selling it after retirement can yield a significant amount, allowing the purchase of another property.

Other Benefits

With the growing population, areas near major cities are gaining value over time. New hospitals, schools, shopping malls, and businesses can increase the value of nearby properties, making investments in suburban areas profitable in the long run.

Benefits for Future Generations

The property purchased during one’s lifetime serves as an asset for future generations, unlike stocks which do not provide substantial benefits to heirs. Houses and plots remain valuable assets for descendants.

Tax Benefits

Home loan borrowers can avail tax benefits. Purchasing properties worth up to Rs.1,50,000 can provide significant tax exemptions, benefiting those who take loans for buying homes.

Conclusion

Compared to stock trading or other businesses, investing in real estate is not only safe but also beneficial. Real estate investments support not just the individual but also future generations. If everyone follows this investment path, the dream of home ownership for all will become a reality in the country.