Real Estate Investments

Although Real Estates might have lost its radiance over the course of time it still plays an important pivotal role if understood efficiently for its long-term prospects. It bears a striking proportionality aspect when it comes to stock market. Property prices tend to be reasonable across cosmopolitan cities and ensure good returns. Although the stock market is known for its volatility there is no guarantee. However, if you buy a property below its market price, sell it for profit or keep it for rental purpose, anyway, you are bound to walk away with thousands of dollars. Though stock investing is practically cheaper, when it comes to investments, two things should be kept in mind. The investments should be preserved and mature and grow to meet financial goals.

In real estates, an investor has the option of buying the property that can be a piece of land, an under-construction building or an already finished apartment, or a commercial property. Apart from this, one also has the choice of taking indirect routes, by taking participation in the reality, via professionally managed real estate funds. With the benefit of the ever-growing network and advent of various real estate firm sites, many investors feel empowered. Nowadays, people receive information about projects (ongoing and completed) and there is also a provision for linking buyers to sellers.

Advantages of Real Estate Investments

Now the advantage of investing in real estates though limited is highly beneficial. The land is a limited resource on this planet. With population expanding, demand for realty will only go on increasing. Realty is an asset; a form of investment provides maturity and growth. There can be regular sources of income, via the rent from a house property. It nullifies the risk of suffering loss from inflation and is often termed as a hedge against inflation and can be chosen as an option for one’s retirement plans. It is the only category of an asset where leveraging (investing with the help of borrowed money) is a viable option, with cheap financing and exclusive interest rates. It also has various tax benefits.

Real estate industry in India is in a transition phase at present.  With the implementation of RERA, the procedures in real estate firms will be smoother. GST is likely to benefit the NRI folks with a boost from foreign investment. The positive aspect of GST is the simplification of the taxation.

Realty investments require high capital and the transaction costs are higher. Though it sounds very exciting to invest in a realty firm, it is only advisable to keep your options open and to be present in multiple asset classes, rather than trying luck at one category of the asset class.