Real estate is a flourishing market. We find almost everyone investing in properties and seeking for guidance in choosing a good property. Be it a shopping complex or constructing homes, everyone looks for is value. From industrialists to investors, the one thing everyone is looking for is to diversify their profits, thus the real estate offers them a great opportunity.
On the other hand, however, real estate is known for being an expensive affair. However, those who are looking to explore the real estate market, here are some great reasons why real estate investments will always score high.
1.Sense of ownership
The first reason why everybody wants to buy a home is that investing in a property gives a sense of ownership. Being a noticeable asset, it also gives a sense of security to an individual rather through owning stocks and bonds as your investment has a physical presence.
If you are looking for long-term capital gains, purchasing properties will be one of the best reasons as the customer receives tax exemptions from the government on investing in a new land or house.
One of the things that increase value as time increases is property, that is, a perk of investing in property is that it gains with time. For example, property valuations in Chennai have grown exponentially almost 70% over the last 5 years. Property rates have simply sky-rocketed. This high rate of expansion and availability of facilities boosts the value of your property even more. These external factors too contribute to turning your investment into a valuing asset.
4.Protection against inflation:
Inflation is when there is an increase in currency value. Real estate is known to be one of the best ways to combat inflation as the value of the property increases as currency value increases due to inflation. With that when the availability of land and the constant increase in population, real estate investments becomes one of the safe bets against inflation.
We all always welcome a little extra cash. Investing in property guarantees that. This income is produced by renting the property. Looking at a comparison, between an income of Rs. 50,000 generated from a business which has additional taxes and the same income generated from a rental property, which is more profitable? It’s the Rs.50, 000 generated from the rental property. This is because our Government offers tax benefits due to devaluation costs which include property maintenance and various labor charges incurred for repair work and bill payment. This income is created by renting your property. Renting as a commercial undertaking is also extremely profitable. On the whole, renting becomes quite profitable.
6.Leave a legacy:
The property remains in the family, even after the initial buyer is gone. Unless the successors decide to sell it, it remains a permanent investment. The kin will benefit from this value-increasing asset, making it a great thing to leave behind for the family.
No one suffers from a loss due to real estate. The owner does not need to worry about stocks crashing or businesses incurring the loss because he or she has complete ownership of the land or property. Of course, he or she can decide to rent out the property or sell the property to generate more income. Though proper research is a must while selecting a property and buying from reputed builders is really essential to avoid being fooled.