Why should we invest in Real Estate?

How to invest in Real Estate?

Since decades, real estate investment is treated as a rational and profitable investment. One should wisely invest in real estate in order to gain profits and protect our surplus funds. Moreover, it has certain advantages over other types of investment like easy to conduct research and implement, self-controlling and in gaining tax benefits.

You must be familiar with the phrase, ‘safe house.’ Let us interpret this phrase in the field of real estate investment. You purchased a house ten years back for Rs.10 lakhs. And now, you are selling it for Rs.35 lakhs. You are using this money for your post-retirement usage and for your son’s higher education. Well, so this house has resulted in long-term profits. So, this has become your safe house – in making gains and long-term protection.

Let us know why one must wisely invest in real estate area.

Easy to start and conduct research

For investing in real-estate market, you do not need to acquire specialized qualifications or undergo particular courses. You just need to have capital and sufficient knowledge about the real estate market. On the other hand, stock trading or investing in securities requires specialized knowledge right from the beginning. You can even search online for real estate learning materials to get rough idea about the same.

Finance – how do I get it?

Real estate investment does not required large amount of capital in hand. You can even demand for a home loan. The only concern is that you must be smart enough to handle the mortgage and the real estate components. You must plan it certain things properly such as loans, repayment, renting the property, payment of bills, property maintenance, etc.

You become the controlling authority

In share trading, it is always recommended to hire a broker who will take care of your investments. But in real estate investment, you can control your properties right from the loan repayments to the property maintenance. There is no need to rely on a real estate manager. You can decide whether you are renting it or not. Thus, you can handle two aspects in real estate investment: the property itself and the cash flow resulting out of it. You can decide about the usage of the profits generated out of it.

Tax benefits

You can also earn tax benefits out of real estate investment as you are not paying tax on the profits earned out of it. But do not forget the payment of house tax and water charges.

For usage in future

Let us predict a situation in which you need a property to live after your retirement. Do not forget that your house is also a property for you. If you feel like living in that property, you can even move in it. There is no compulsion that you have to rent it or sell it in future. Thus, property also provides a shelter for you in the long-term period.

Conclusively, one must invest in real estate market with a systematic plan and commitment. If you are doing it carefully and wisely, then you will be certainly benefitted from it.